HomeMy WebLinkAbout12201RESOLUTION NO. 12201
A RESOLUTION APPROVING A CONTRACT TO BUY AND
SELL REAL ESTATE, AUTHORIZING THE PRESIDENT OF
THE CITY COUNCIL TO EXECUTE SAID CONTRACT,
AND TRANSFERRING $4,350,000 FROM THE 1992-2016
SALES AND USE TAX CAPITAL IMPROVEMENT
PROJECTS FUND THEREFOR
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council finds and determines that the expenditure of $4,350,000 for
purchase of approximately 11.2 acres of real property with industrial buildings
containing approximately 192,000 square feet under roof, to be made available for
primary job creating capital improvement projects meets and complies with the criteria
and standards established by Ordinance No. 6381, as amended by Ordinances No.
7583 and 7836, and will create employment opportunities justifying the expenditure of
public funds.
SECTION 2.
The Contract to Buy and Sell Real Estate dated as of August 8, 2011 between
Pueblo, a Municipal Corporation and Woodmen Joint Venture, LLP, Caleb
Development, LLC and Sunborne XII, LLC (collectively "Seller"), a true copy of which is
attached hereto (“Contract”), having been approved as to form by the City Attorney, is
hereby approved. The President of City Council is authorized to execute and deliver the
Contract in the name and on behalf of the City and the City Clerk is directed to affix the
seal of the City thereto and attest same.
SECTION 3.
Funds in the aggregate amount of $4,350,000 are hereby authorized to be
transferred, expended and made available out of the 1992-2016 Sales and Use Tax
Capital Improvement Projects Fund for the sole purpose of paying the $4,300,000
purchase price under the Contract, and paying up to $50,000 for appraisal, technical
and professional services associated with inspection, testing, closing costs and other
services and costs as may be reasonably incurred by the City in connection with the
Contract (the "Associated Acquisition Costs"). The funds hereby authorized to be
transferred and expended shall be held by the City and released, disbursed and paid by
the Director of Finance in the following manner: the sum of $4,300,000 to be paid to or
for the benefit of Seller in accordance with the terms of the Contract; and the sum of
$50,000 for Associated Acquisition Costs, whenever incurred.
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, and all actions heretofore taken in connection therewith
are ratified and affirmed.
SECTION 5.
This Resolution shall become effective upon final approval and passage.
INTRODUCED August 8, 2011
BY: Chris Kaufman
COUNCILPERSON
BACKGROUND PAPER FOR PROPOSED
RESOLUTION
DATE:AGENDA ITEM # M-1
August 8, 2011
DEPARTMENT:
Law Department
Thomas J. Florczak, City Attorney
TITLE
A RESOLUTION APPROVING A CONTRACT TO BUY AND SELL REAL ESTATE,
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID
CONTRACT, AND TRANSFERRING $4,350,000 FROM THE 1992-2016 SALES AND
USE TAX CAPITAL IMPROVEMENT PROJECTS FUND THEREFOR
ISSUE
Should City Council approve a Contract to purchase Lots 46 and 47, Pueblo Memorial
Airport Industrial Park Subdivision, known as 1 McDonnell Douglas Avenue (the former
Boeing facility) for $4.3 million?
RECOMMENDATION
PEDCO recommends that City Council approve the Contract.
BACKGROUND
This Resolution would approve a contract for the purchase of the former Boeing
facilities at the Pueblo Memorial Airport Industrial Park for $4,300,000. The Contract
provides an opportunity for the City to perform inspection and testing, and to terminate
the Contract if conditions are unacceptable. Though the Contract requires the Sellers to
make numerous representations, covenants and warranties regarding the Property,
those representations, covenants and warranties terminate two (2) yeas after the
closing of the transaction, so the Property is essentially being purchased "AS IS."
The Property is also subject to two (2) short term leases which the City would take over
as landlord until terminated.
Should the City terminate the Contract in accordance with its terms, the $10,000
earnest money deposit would be returned, less the costs of the survey provided by
Seller.
The purchase price, together with costs for appraisal, inspection and other services,
would be transferred from the 1992-2016 Sales and Use Tax Capital Improvement
Projects Fund. In connection therewith, the Council finds and determines that the
acquisition meets and complies with the intent and purpose of the criteria and standards
established by Ordinances No. 6381, 7583 and 7836 and will create employment
opportunities justifying the expenditure of these funds.
FINANCIAL IMPACT
See Background.
7 26 -2011
CONTRACT TO BUY AND SELL REAL ESTATE
THIS CONTRACT TO BUY AND SELL REAL ESTATE ( "Contract ") is made and entered
into as of August 8, 2011 (the "Effective Date ") by and between Woodmen Joint Venture, LLP, a
Colorado limited liability partnership ( "Woodmen "), Caleb Development, LLC, a Colorado limited
liability company ( "Caleb ") and Sunborne XII, LLC a Colorado limited liability company
( "Sunborne ") (collectively, Woodmen, Caleb and Sunborne are referred to herein as "Seller ") and
Pueblo, a Municipal Corporation (the "Buyer ") Buyer and Seller are each sometimes referred to
herein as a "Party" and, collectively, as the "Parties."
Recitals
A. Seller is the owner of approximately 11.2 acres of real property with improvements
consisting principally of a warehouse/ manufacturing facility with offices and storage buildings
located within Pueblo County, Colorado, and more particularly described as.
Lots 46 and 47, Pueblo Memorial Airport Industrial Park Subdivision, County of Pueblo,
State of Colorado
( the "Property ") Seller desires to sell the Property
B Buyer is desirous of purchasing the Property from Seller upon the terms and
conditions set forth hereinafter
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 Property,
together with all tenements, hereditaments, appurtenances, interests, rights, benefits, easements and
improvements thereunto belong or appertaining, including, without limitation, all crane rails, cranes
and personal property located upon the Property, all of which are and shall constitute part of the
Property as defined herein, on the terms and conditions set forth in this Contract.
2. Purchase Price and Terms. The Purchase Price of the Property is $4,300,000 00
payable as follows
(a) $10,000 00 as Earnest Money, to be held in trust by Heritage Title Company,
and paid to Seller on Closing Date ( as defined in Paragraph 5 below),
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(b) $4,290,000 00 payable on Closing Date (as defined in Paragraph 5 below),
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 Pnce 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 five (5) business days after the
Effective Date of this Contract Seller shall order and obtain, at Seller's expense, a current
commitment for 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 Heritage Title Company (the "Title Company "), on the current standard form of
ALTA Owners Policy which deletes (or contains a commitment to delete) Schedule B -2 standard
exceptions numbered 1 through 6 inclusive (collectively, the "Title Commitment ") The Title
Company shall promptly provide copies of any amendments or modifications of the Title
Commitment to Buyer in accordance with Paragraph 15 Buyer shall be responsible for any
additional premiums charged by the Title Company for special or additional endorsements requested
by Buyer other than (I) deletion of standard exceptions 1 through 6, and (II) endorsements obtained
by Seller for the purpose of providing title insurance protection with regard to any objections raised
by Buyer in accordance with the provisions of Subparagraph 3(c) 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, including deletion of standard exceptions. Buyer may
obtain such other endorsements to the Title Policy as Buyer desires, at the expense of Buyer Seller
shall provide such affidavits or certificates as may be required by the Title Company to remove all
liens, including, without limitation, mechanics' or ma�men's liens, as exceptions to the Title
Policy
(b) Survey Within tvnty (10) days of the Effective Date, Seller shall order , at
Seller's expense, for delivery to the Title Company, within thirty (30) days of the order date, with a
copy to Buyer, an improvement survey plat meeting the requirements of §38 -51 -106, C.R.S and
containing the description of the Property and showing the 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 Property, in a form sufficient to enable the Title Company to issue the Title Policy in
compliance with this Paragraph 3, certified to Buyer, Seller, and the Title Company (the "Survey ")
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If Buyer does not purchase the Property, Buyer agrees to reimburse Seller for the cost of the Survey
(c) Title Defects and Objections. Buyer will have twenty (20) days from the date
of Buyer's receipt of the Title Commitment and Survey, whichever shall last occur, to give notice to
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 wntten 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 ten (10) 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 pnor to or concurrently with Closing.
4 Disclosures, Inspection.
(a) Within twenty (20) days of the Effective Date, Seller shall provide true and
complete copies of the following documents to Buyer, to the extent within Seller's possession or
control (collectively, the "Property Documents ") Property Documents are defined as the documents
listed on the attached Schedule (A), and any other documents concerning the Property in Seller's
custody or control which are of a similar kind or type as the documents listed on Schedule A. Seller
shall be under a continuing duty to provide additional documents which it may come to possess after
such period, including but not limited to any new leases or extensions of leases entered into pursuant
to Subparagraph 14(b)
(b) The heating, ventilating, air conditioning, electrical, plumbing, water, roofing,
storm drainage and sanitary sewer systems upon or servicing the Property were verified to be
functioning to Seller's satisfaction when Seller purchased the Property As these systems and
improvements have been needed to support building operations, they have been placed in service. If
they have not been needed, they have not been placed in service. Seller can make no representation
or warranty regarding the condition of these systems or improvements. Paragraph 4 (c) provides for
Buyer, at Buyer's expense to inspect any and all of the systems of the Property Seller has no
objections to Buyer operating any of these systems so long as the cost of inspecting and operating
them are Buyer's.
(c) Commencing on the Effective Date and continuing during the term of this
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Contract until the first to occur of the Closing Date or termination of this Contract, Buyer, its agents,
consultants and employees, shall ,with at least 24 hours advance notice to and approval by Seller,
which shall not be unreasonably withheld, be permitted to enter and access the Property during
normal business hours of 8 am to 5 pm, Monday through Friday, 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 Buyer agrees to
notify all of its agents, consultants and employees who will be entering the premises that they are not
to unreasonably disturb, or engage in conversation with, any employees or representatives of the
tenants at the Property 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 notify
Seller upon the completion of such tests and deliver copies of all Testing results to Seller upon
Seller's request. Buyer shall indemnify, defend and hold Seller and the Property harmless from and
against any and all direct 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 ansing from Seller's negligent acts or omissions or to 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 1, 2011 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 1,
2011
6 Transfer of Title. Subject to payment of the Purchase Price, compliance by Buyer
with the other terms and provisions hereof, and the occurrence or waiver by Buyer of the Conditions
Precedent to Closing defined and described in Paragraph 7, Seller shall execute and deliver to Buyer
at Closing a Special Warranty Deed conveying marketable fee simple title to the Property to Buyer
free of financing, mortgage, judgment and tax hens, subject only to the Permitted Exceptions. Seller
shall also execute and deliver to Buyer at Closing a bill of sale conveying Seller's interest in the
cranes, crane rails and all other personal property associated with the Property, and an assignment of
Seller's interest, if any, in any permits, licenses, warranties, mdemmties, and contract rights and
guarantees pertaining to the Property or any part thereof or improvement thereon.
7 Additional Conditions Precedent to Closing. The sale and purchase contemplated by
this Contract is contingent upon occurrence of all of the following prior to Closing Date
(collectively, the "Conditions Precedent to Closing ")
(a) City Council of Buyer, as its governing body, approving this Contract on or
before Closing. The Parties presently intend that this Contract will be presented to the City Council
for approval on August 8, 2011, provided, however, that the date of presentation may be delayed or
postponed in the sole and absolute discretion of Buyer
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(b) Funds for the payment of the Purchase Pnce have been duly appropriated by
Buyer's governing body in accordance with law and a sufficient unencumbered balance thereof exists
sufficient for payment of the Purchase Price stated above.
(c) The results of inspection and testing do not indicate any conditions which
are deemed unacceptable to Buyer, in Buyer's sole and absolute discretion.
(d) The terms of any leases upon the Property are determined by Buyer not to be
objectionable, in Buyer's sole and absolute discretion.
In the event any of the Conditions Precedent to Closing are not satisfied on or before ten (10)
days before the Closing Date, Buyer may by notice given to Seller not less than five (5) days prior
to Closing Date (i) waive any or all of the above conditions in writing delivered to Seller and close
the sale and purchase of the Property, or (ii) elect to terminate this Contract, in which event the
Earnest Money shall be returned to Buyer and each party will be released from all obligations under
this Contract.
8 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
9 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, the Pueblo Combined Service Fee, rents and other usual and customary items shall be
prorated between Seller and Buyer as of the Closing Date.
10 Possession. Possession of the Property shall be delivered to Buyer by Seller on
Closing Date At Closing, Seller shall provide true copies of all leases in effect at the time of
Closing to Buyer, and furnish Buyer with (I) a signed acknowledgement by Seller that to the best of
Seller's knowledge, the lessees and tenants of the Property are not in any material default thereof,
and (II) an acknowledgement signed by authorized representatives of lessees and tenants that the
leases attached thereto are true and correct copies of the leases, that lessees and tenants are not aware
of any matenal breach of the lease or default by Seller, and stating the amount of all damage and
secunty deposits being held by Seller Provided that Seller has furnished the foregoing, upon
Closing, Buyer agrees to take possession subject to all terms and conditions of such leases of the
Property and will receive from Seller and be responsible for any tenant damage and secunty
deposits and will release Seller of any further obligations with regards to such leases
11 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's sole remedy shall be to terminate this Contract and retain the entire
amount of the Earnest Money as liquidated damages and in lieu of all other remedies it may pursue,
and Seller shall have no right to damages.
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(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.
12 Representations and Warranties of Seller Buyer and Seller acknowledge that the
Property is being sold "As -Is, Where -Is, with all faults," and Seller is making no representations or
warranties regarding the Property, except for those set forth in Paragraphs 4(a), 10, 11, 14, 21, 25
and this Paragraph 12 Seller further represents and warrants to Buyer, to the best of Seller's
knowledge, as follows ( "to the best of Seller's knowledge" means the knowledge of the officers ,
members and managers of Woodmen, Caleb and Sunborne, after diligent inquiry)
(a) Seller has full power, capacity and authority to execute and deliver this
Contract and all other documents required to be executed and delivered by Seller under this Contract
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 the best of 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) There are no contracts, leases, options or other obligations outstanding for the
sale, lease or transfer of all or any part of the Property except for the existing leases which have been
disclosed by Seller to Buyer
(f) To the best of Seller's knowledge, Seller has furnished all Property
Documents (as defined in Paragraph 4(a)) in Seller's possession to Buyer
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(g) None of the Property is included in the U S Department of Agnculture
Conservation Reserve Program.
(h) 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
(i) To the best of Seller's knowledge and during the time Seller owned the
Property (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 of any 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 Matenals are currently
present on or have at any time been stored or used on the Property For purposes of this
Agreement, "Hazardous Materials" includes (i) any "hazardous waste ", "underground storage
tanks ", "petroleum ", "regulated substance ", or "used oil" as defined by the Resource Conservation
and Recovery Act of 1976 (42 U S C § 9601, et seq) as amended, or by any regulations
promulgated thereunder; (ii) any "hazardous substance" as defined by the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U S C § 9601, et seq) as
amended, or by any regulations promulgated thereunder (including, but not limited to, asbestos and
radon), (iii) any "oil, petroleum products, and their byproducts ", as defined by C.R.S 1973 § 25-
17 -101 et seq., as amended, or by any regulations promulgated thereunder; (iv) any "hazardous
waste" as defined by the Colorado Waste Act, C.R.S 1973 § 25 -15 -101, et seq., or by any
regulations promulgated thereunder; and (v) any substance the presence of which on, in or under
the Property is prohibited by any law similar to those set forth above.
The provisions of this Paragraph 12 shall survive Closing by two (2) years.
13 Representations and Warranties of Buyer 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) Subject to approval by Buyer's City Council, this Contract will have 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.
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14 Seller Covenants.
(a) Except as provided in subparagraph (b), Commencing on the Effective Date and until
the first to occur of Closing or termination of this Contract, Seller shall not, except with the prior
written consent of Buyer (which consent may be withheld, conditioned or delayed at Buyer's sole
and absolute discretion) (I) enter into new leases or extend current leases, sell, convey or further
encumber any portion of the Property, (II) consent to any zoning or other change affecting the use of
the Property, except for those requested or approved by Buyer, or (III) 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
(b) Until the contingencies set forth in Paragraph 7 have either been removed by Buyer
or satisfied, the Seller will have the authority, upon prompt notice to Buyer, to extend or modify
existing leases with current tenants, or to negotiate and sign leases with potential new tenants, and,
subject to Buyer's rights under this Contract, may seek and accept backup offers to purchase the
Property contingent upon Buyer's termination of the Contract or failure to Close. Seller
understands and expressly acknowledges that any such extension of an existing lease or new lease
which contains terms objectionable to Buyer or which extends the term of the lease or any extension
of the term of the lease, or otherwise delays possession by Buyer, beyond March 1, 2012, may be
found objectionable by Buyer, in Buyer's sole and absolute discretion, and will constitute a failure of
a condition precedent for Buyer to close
15 Notices. Any notice required or permitted to be given or delivered under this
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
200 S Main Street
Pueblo, Colorado 81003
Telephone No (719)553 -2655
with a copy to City Attorney
503 N Main, Suite 203
Pueblo, Colorado 81003
Telephone No (719) 562 -3899
(b) If to Seller, addressed to
Sunborne XII, LLC
Attention. LeRoy Landhuis
212 N Wahsatch Ave , Suite 301
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Colorado Springs, CO 80903
Phone 719- 635 -3200
With a copy to Dave Cocolin
Paradigm Realty Advisors, LLC
4500 S Garnett Rd., Suite 600
Tulsa, OK, 74146
Phone 918 - 665 -1900
or to such other address or person as any party may from time to time specify in a wnting 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 Either Party
may provide a copy of any notice by email to the other Party, but it shall not be deemed sufficient
notice under this Contract.
16 Assignment. This Contract and the rights granted to Buyer and Seller hereunder may
be assigned by Buyer or Seller with the other Party's written 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.
Seller shall have the right to transfer all or part of the Property to Buyer in a manner which
qualifies as a tax deferred exchange pursuant to the provisions of Section 1031 and/or other
provisions of the Internal Revenue Code. Buyer agrees to execute additional documents and perform
additional acts, as may be reasonably requested by Seller in connection with the Exchange, provided,
however, (i) the successful completion of the Exchange shall not be a condition to or cause any delay
in the performance of Seller's obligation to convey the Property to Buyer pursuant to the Contract,
and (ii) Buyer shall not incur any additional expense or incur any liability or contingent liability
(including but not limited to any risk of incurring any characterization or remediation expense or
liability pursuant to state or federal environmental laws or regulations) as a result of the Exchange.
17 Modification. No subsequent modification of any of the terms of this Contract shall
be valid or binding upon the Parties or enforceable unless made in wrrtmg and signed by the Parties.
18 Entire Contract. This Contract constitutes the entire contract and agreement between
the Parties relating to the subject matter hereof, and any pnor statements, representations or
agreements pertaining thereto, whether oral or written, have been merged and integrated into this
Contract.
19 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
20 Validity If any provision of this Contract shall be held to be mvand or
unenforceable, the same shall not affect in any respect whatsoever the validity or enforceability of
the remainder of this Contract.
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21 Broker Buyer and Seller represent and warrant to the other that no broker or finder
has been engaged by such Party 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 anse 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 LeRoy Landhuis is a licensed real estate broker in the State of Colorado
22 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)
23 Interpretation. 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.
24 Survival of Representations. The representations, warranties, covenants and
agreements of Buyer and Seller in this Contract shall survive the Closing of the transaction
contemplated hereby and recordation of the Special Warranty Deed for two (2) years, and shall not
be deemed merged in such Deed and may be enforced by either Party unless barred by applicable
periods of limitation or repose.
25 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
26 Counterparts. This Contract may be executed in multiple counterparts, all of which
taken together shall be deemed one original.
27 Exclusivity Except as provided in Subparagraph 14(b), 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 officers, employees, attorneys or consultants
IN WITNESS WHEREOF, the parties have executed this Contract effective as of the
Effective Date.
10
BUYER. SELLER.
PUEBLO, a Municipal Corporation SUNBORNE XII, LLC
a Colorado limited liability company
By By i
President o the rty Council L; ' oy Landhuis, Manager
Attest: CALEB DEVELOPMENT, LLC
City lerk a Colorado limited liability company
Approved as to form. By -
Le an , as President of Landhuis
,. ', _ ,. — /,L ` � Q. pb - evelopment Co , Manager
, City Attorne ,
$\ i . ‘ OODMEN JOINT VENTURE, LLP
� olorado limited habihty partnership
g _ s il t1 e eR`;, -La dhuis, Partner
11
v
SCHEDULE A
PROPERTY DOCUMENTS TO BE PROVIDED BY SELLER
(t) Copies of all leases, and lease amendments and extensions
(11) All service, labor and maintenance contracts affecting the Property, if any,
(iii) Copies of the most recent property tax bill and latest assessment notice for the
Property,
(iv) Material engineering and soil reports relating to the Property, if any that are in
Seller's possession,
(v) All material specifications and plans concerning improvements on the Property,
including as -built plans that are in Seller's possession,
(vi) Copies of all documents in Seller's possession or control that are material to the
environmental condition of the Property, including but not limited to the 2006
Environmental Phase I and Phase II reports prepared by Terracon
(vii) Material documents concerning the Property as follows
a. Most recent Roof inspection and all documents concerning roof repairs made
dunng Seller's ownership
b Most recent water backflow tests
c Most recent boiler inspection
d. All chiller and HVAC reports during Seller's ownership
e. Cranes — The cranes were not certified for use when Seller purchased the
Property and have not been inspected or certified during Seller's ownership
12
BILL OF SALE
KNOW ALL MEN BY THESE PRESENTS, That Woodmen Joint Venture, LLP, a Colorado
limited liability partnership as to an undivided 20% interest and Investment Property Exchange
Services, Inc., a California corporation, as Qualified Intermediary under Exchange No. EX-09-
14886 for Caleb Development, LLC, a Colorado limited liability company as to an undivided
14% interest and Sunborne XII, LLC, a Colorado limited liability company as to an undivided
66% interest of the County of El Paso, State of COLORADO (Seller), for and in consideration of
Ten Dollars and other Valuable Consideration to them in hand paid, at or before the ensealing or
delivery of these presents by Pueblo, a Municipal Corporation of the County of Pueblo, in the
State of COLORADO (Buyer), the receipt of which is hereby acknowledged, has bargained and sold,
and by these presents does grant and convey unto the said Buyer, their personal representatives,
successors and assigns, the following property, goods and chattels, to wit:
a) Fixtures. If attached to the property on the date of this contract, Lighting, heating, plumbing,
ventilating and air conditioning fixtures, inside telephone wiring and connecting blocks/jacks, plants,
mirrors, floor coverings, intercom systems, sprinkler systems and controls and
Cranes, Crane Rails, and all other personal property associated with the Property
b) Exclusions. The following attached fixtures are excluded from the sale:
c) Personal Property. If on the property whether attached or not on the date of this contract: storm
windows, storm doors, window and porch shades, awnings, blinds, screens, window coverings,
cur in rods, drapery rods, storage sheds and all keys. If check the following are included:
IBSmoke/Fire Detectors, IPS Systems; and
d) Transfer of Personal Property. The Personal Property to be conveyed at closing shall be
conveyed, by Seller, free and clear of all taxes, (except personal property taxes for the year of
closing), liens and encumbrances, except
e) Trade Fixtures. With respect to trade fixtures, Seller and Buyer agree as follows:
located at 1 McDonnell Douglas St., Pueblo, CO 81001
TO HAVE AND TO HOLD the same unto the said Buyer, their personal representatives,
successors and assigns, forever. The said Seller covenants and agrees to and with the Buyer, their
personal representatives, successors and assigns, to WARRANT AND DEFEND the sale of said
property, goods and chattels, against all and every person or persons whomever. When used herein,
the singular shall 'include the plural, the plural the singular, and the use of any gender shall be
applicable to all genders.
IN WITNESS WHEREOF, the Seller has executed this Bill of Sale April 25, 2012.
SELLERS:
Woodmen Joint Venture, LLP, a Colorado Approved and Accepted:
limited liability partnership
Caleb D opment, LLC, a Colorado limited
Ilabi • company
,e y L. � uis, Partner eRoy Landhuis as President of Landhuis
Development Company, Manager
Landh • veto Company, .Partner
LeRoy Landhuis, President
Sunborne . 1 C, a Colorado limited
liabili o � r : y
• oy Landhuls, Sole Member
State of COLORADO
County The foregoing instrument was acknowledged, subscribed and sworn to before me April 25, 2012 by p,t4 1/ 44; i y
Woodmen Joint Venture, LLP. a Colorado limited liability partnership as to an undivided 20% ` .` p Q ........... � .0 I
interest and Investment Property Exchange Services, Inc., a California corporation, as Qualified : •'•�� � 'j
Intermediary under Exchange No. EX -09 -14886 for Caleb Development, LLC, a Colorado limited ` : • NO Ft Y
liability company as to an undivided 14% interest and Sunborne XII, LLC, a Colorado limit — e
liability company as to an undivided 66% interest •
Witness my hand and official seal. �" P(1131--1-1 . f 0
Notary P IubTc 1 / OF C��'
My Commission expires / �_ lj�r 9-
II IS
ESCROW NO. 456-H0334192-071-TS9
Official Records of Pueblo County Clerk & Recorder 1905762
04/2512012 02:10:26 PM Page 1 of 2
Warranty Deed R: $16.00 D: $0.00 Gilbert Ortiz
After Recording Return to
Pueblo, a Municipal Corporation
200 S Main St
Pueblo, CO 81003
SPECIAL WARRANTY DEED
This Deed, made April 25, 2012
Between Woodmen Joint Venture, LLP, a Colorado limited liability partnership as to an
undivided 20% interest and Caleb Development, LLC, a Colorado limited liability
company as to an undivided 14% interest and Sunborne ?EII, LLC, a Colorado limited
liability company as to an undivided 66% interest, of the County of El Paso, State of COLORADO,
g:antor(s) and Pueblo, a Municipal Corporation, whose legal address is 200 S Main St, Pueblo, CO 81003
County of Pueblo, and State of COLORADO, grantee(s)
WITNESSETH, That the grantor(s), for and in the consideration of the sum of TEN and NO /100
($10.00) the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed,
and by these presents does grant, bargain, sell, convey and confirm, unto the grantee(s), his heirs and assigns
forever, all the real property together with improvements, if any, situate, lying and being in the County of Pueblo,
State of COLORADO described as follows:
• Lots 46 and 47, Pueblo Memorial Airport Industrial Park Subdivision, County of Pueblo, State of Colorado.
also known by street and number as 1 McDonnell Douglas St, Pueblo, CO 81001
TOGETHER with all and singular hereditaments and appurtenances, thereunto belonging, or in anywise
appertaining, and the reversion and reversions, remainder and remainders, rents issues and profits thereof, and all
the estate, right, title, interest, claim and demand whatsoever of the grantor, either in law or equity, of in and to
the above bargained premises, with the hereditaments and appurtenances.
TO HAVE AND TO HOLD said premises above bargained and described, with the appurtenances,
unto the grantee, their heirs and assigns forever. The grantor(s), for themselves, their heirs and personal
representatives or successors, does covenant and agree that they shall and will WARRANT AND FOREVER.
DEFEND the above - bargained premises in the quiet and peaceable possession of the grantee(s), their heirs and
assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the
grantor(s).
The singular number shall include the plural, the plural the singular, and the use of any gender shall be
applicable to all genders.
IN WITNESS WHEREOF, the grantor has executed this on the date set forth above,
SELLERS:
Woodmen Joint Venture, LLP, a Colorado limited Caleb Development, LLC, a Colorado limited
liability par ip liability c'
L Landhuis, Partner - ' oy Landhuis as President of Landhuis
/r Development Company, Manager
•
Landhuis D opment Company, Partner
I,t�t Andhuis, President
WDTRIMARK ESCROW NO. 456-H03 34 1 92- 07 1 -TS9
HT
After Recording Return to
Pueblo, a Municipal Corporation
200 S Main St
Pueblo, CO 81003
SPECIAL WARRANTY DEED
This Deed, made April 25, 2012
Between Woodmen Joint Venture, LLP, a Colorado limited liability partnership as to an
undivided 20% interest and Caleb Development, LLC, a Colorado limited liability
company as to an undivided 14% interest and Sunborne XII, LLC, a Colorado limited
liability company as to an undivided 66% interest, of the County of E1 Paso, State of COLORADO,
grantor(s) and Pueblo, a Municipal Corporation, whose legal address is 200 S Main St , Pueblo, CO 81003
County of Pueblo, and State of COLORADO, grantee(s)
WITNESSETH, That the grantor(s), for and in the consideration of the sum of TEN and NO /l00
($10.00) the receipt and sufficiency of which is hereby acknowledged, has granted, bargained, sold and conveyed,
and by these presents does grant, bargain, sell, convey and confirm, unto the grantee(s), his heirs and assigns
forever, all the real property together with improvements, if any, situate, lying and being in the County of Pueblo,
State of COLORADO described as follows:
Lots 46 and 47, Pueblo Memorial Airport Industrial Park Subdivision, County of Pueblo. State of Colorado.
also known by street and number as 1 McDonnell Douglas St., Pueblo, CO 81001
TOGETHER with all and singular hereditaments and appurtenances, thereunto belonging, or in anywise
appertaining, and the reversion and reversions, remainder and remainders, rents issues and profits thereof, and all
the estate, right, title, interest, claim and demand whatsoever of the grantor, either in law or equity, of, in and to
the above bargained premises, with the hereditaments and appurtenances.
TO HAVE AND TO HOLD said premises above bargained and described, with the appurtenances,
unto the grantee, their heirs and assigns forever. The grantor(s), for themselves, their heirs and personal
representatives or successors, does covenant and agree that they shall and will WARRANT AND FOREVER
DEFEND the above - bargained premises in the quiet and peaceable possession of the grantee(s), their heirs and
assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the
grantor(s).
The singular number shall include the plural, the plural the singular, and the use of any gender shall be
applicable to all genders.
IN WITNESS WHEREOF, the grantor has executed this on the date set forth above.
SELLERS:
Woodmen Joint Venture, LLP, a Colorado limited Caleb Development, LLC, a Colorado limited
liability par tip liability c.
L Landhuis, Partner • oy Landhuis as President of Landhuis
Development Company, Manager
Landhuis t opment Company, Partner -
' , r ndhuis, President
WDTRIMARK ESCROW NO. 456- H0334192- 071 -TS9
Sunborne X11, LLC. a Colorado limited liabili . -
company
I o La • • : • e ember
STATE OF COLORADO }ss:
COUNTY OF El Paso
The foregoing instrument was acknowledged before me April 25, 2012 by LeRoy Landhuis as Partner, and
LeRoy Landhuis as President of Landhuis Development Company, Partner of Woodmen Joint Venture, LLP,
a Colorado limited liability partnership as to an undivided 20% interest, LeRoy Landhuis as President of
Landhuis Development Company, Manager of Caleb Development, LLC, a Colorado limited liability
company as to an undivided 14% interest, and LeRoy Landhuis as Sole Member of Sunborne XII, LLC, a
Colorado limited liability company as to an undivided 66% interest.
Witness my hand and official seal.
``` ��gf11111111// ///// / � e•
O Notary � 1 g Not Public
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CI)! NOTARY $ My Commission expires: / �j� _ • /
a
'' 11/4 n nFyl�C *a
a
REAL PROPERTY TRANSFER DECLARATION
(TD -1000)
GENERAL INFORMATION
Purpose: The Real Property Transfer Declaration provides essential information to the county assessor to help ensure
fair and uniform assessments for all property for property tax purposes. Refer to 39- 14- 102(4), Colorado Revised
Statutes (C.R.S.).
RequIrenients: All conveyance documents (deeds) subject to the documentary fee submitted to the county clerk and
recorder for recordation must be accompanied by a Real Property Transfer Declaration. This declaration must be
completed and signed by the grantor (seller) or grantee (buyer). Refer to 39- 14- 102(I)(a), C.R.S.
Penalty for Noncompliance: Whenever a Real Property Transfer Declaration does not accompany the deed, the clerk
and recorder notifies the county assessor who will send a notice to the buyer requesting that the declaration be returned
within thirty days after the notice is mailed.
if the completed Real Property Transfer Declaration is not returned to the county assessor within the 30 days of notice,
the assessor may impose a penalty of $25.00 or .025% (. 00025) of the sale price, whichever is greater. This penalty
maybe imposed for any subsequent year that the buyer fails to submit the declaration until the property is sold. Refer to
39- 14- 102(1)(b), C.R.S.
Confidentiality: The assessor is required to make the Real Property Transfer Declaration available for inspection to the
buyer. However, it is only available to the seller if the seller filed the declaration. Information derived from the Real
Property Transfer Declaration is available to any taxpayer or any agent of such taxpayer subject to confidentiality
requirements as provided by law. Refer to 39- 5- 121.5, C.R.S and 39- 13- 102(5)(c), C.R.S.
1. Address or legal description of real property: Please do not use P:0. Box numbers.
1 McDonnell `Douglas 'St., Pueblo, CO 81001
Lot(s) 46 - Lot(s) 47, of Pueblo Memorial Industrial Park Subdivision, County of Pueblo, State of
Colorado
2. Type of property purchased: ❑ Sin le Family Residential ❑ Townhorne ❑ Condominium
❑ Multi -Unit Res ❑ Commercial Industrial ❑ Agricultural ❑ Mixed Use ❑ Vacant
Land 13 Other ,
3. Date of Closing:
April 25, 2012
Month Day Year
Date of Contract If Different than date of closing:
March 27, 2Q12
Month Day Year
4. Total sale price: including all real and personal property.
$4,300,000.00
5. Was any personal property included in the transaction? Personal property would include, but is not limited to,
carpeting, draPes, free standing appliances, equipment, inventory, furniture, If the personal property is not listed,
th entire purchase price will be assumed to be for tte real property as per 39 -13 -102, C.R.S.
Yes 0 No If yes ,approximate value $ OO, (40.00 .
escribe
6. Did the total sale price include a trade or exchange of additional real or personal property? If yes, give the
approximate value of the goods or services as of the date of closing.
17 Yes , 5k No If yes, value $
If yes, does this transaction involve a trade under IRS Code Section 1031? ❑ Yes ❑ No
7, as 100% interest In the real property purchased? Mark "no" if only a partial interest is being purchased.
Yes ❑ No If no, interest purchased
8. Is this a transaction: among related parties? indicate whether the buyer or seller are related. Related parties
include per nswithin the same family, business affiliates, or affiliated corporations.
❑ Yes No
9. Check any of the following that apply to the condition of the improvei n ts.at the time of purchase.
❑ New ❑ Excellent 13 Good ❑ Average ❑ Fair t� Poor ❑ Salvage.
Escrow No. 456-110334192-071-Tempe Snyder
If the property is financed, please complete the following.
10. Total amount financed: $ tj A
11. Type of financing: (Check all that apply)
❑ New
❑ Assumed
❑ Seller
❑ Third Party
❑ Combination; Explain
12. Terms
❑ Variable; Starting interest rate
❑ Fixed; Interest rate
Length of time years
Balloon payment ❑ Yea ❑ No If yes, amount $ Due date
13. Mark any that apply: ❑Seller assisted down payments, ❑ Seiler concessions, Special terms or financing.
If marked, please specify:
For properties other than residential (Residential is defined as: single family detached, town homes, apartments and
condominiums) please complete questions 14.16 if applicable. Otherwise, skip to #17 to complete.
14. Did the purchase price include a franchise or license fee? ❑ Yes No
If yes, franchise or license tee value $
15. Did the purchase price involve an installment land contract? ❑ Yes No
if yes, date of contract
16. If this was a vacant land sale, was an on -site Inspection of the property conducted by the buyer prior to the
closing? ❑ Yes ❑ No
Remarks: Please include any additional information concerning the sale you may feel is important.
TIA wens wo Gil arms- /e+ , -fi rezo,s¢a�i c?hd
QS St1� f -� ' iee6A�I con SiIieQ io1Vs 4.IvitcA arC CoVlt'i k1 ire(.
17. Signed this April 25, 2012.
Enter the day, month, and Year, have at least one of the parties to the transaction sign the document, and include an
address and a daytime phone number. Please designate buyer or seller.
BUYER:
Pueblo, nici.al Corporation ly��
13y: fs/ /
"4", Signatu of Grantee (Buyer
18. All Future correspondence (tax bills, property valuations, etc.) regarding this property
s hould be m iled / to : r^
64 .f 441e4.43.v: nee the ak 269-Ail4n er / ` t� Ceb f rr� ( 1 i� t f •
7/q — 5 3 3— ;26
Address (mailing) Daytime Phone
P • o .• ;. 11
City, State and hip Code
Escrow No. 456- H0334192- 071.Tetnpe Snyder
RPTRNSFR -Real Properly Transfer Declaration
CONSENT TO ENTRY
THIS INSTRUMENT is made and entered into this 26th day of April, 2012 by and between M.A.
Mortenson Company, a Minnesota corporation, doing business as Mortenson Construction (hereinafter referred
to as "Consultant "), and the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City").
WHEREAS, City owns a parcel of land and industrial building located on Lots 46 and 47, Pueblo
Memorial Airport Subdivision, City of Pueblo, State of Colorado, also known as 1 McDonnell Douglas Street,
Pueblo, Colorado, 81 001 (the "Property"); and
WHEREAS, Consultant desires to enter and inspect the Property on behalf of an undisclosed client
(the "Client') in connection with the possible lease or purchase of the Property; and
WHEREAS, City is willing to allow such entry and inspection subject to observance of the terms and
conditions sets forth herein, which the parties agree and acknowledge are for the protection ofthe City, are not
mere recitals, and are contractually binding and enforceable.
NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions set forth
herein, the parties agree as follows:
1. Conditional Consent. After execution of this Instrument by all of the parties hereto and
deposit of a fully executed duplicate original of this Instrument with an authorized representative of City, and
until either (a) expiration of the term of this Instrument, or (b) earlier termination as provided herein,
Consultant, its subcontractors and the employees of each, may enter upon the Property upon advance notice to
City at reasonable hours in order to perform those activities authorized below in compliance with all of the
terms, conditions and restrictions set forth in this Instrument. All references to "Consultant" herein shall apply
to its subcontractors and employees who enter the Property, and Consultant shall make the same aware of the
requirements of this Instrument.
2. Authorized Activities. Consultant is authorized only to conduct the following activities upon
the Property in compliance with the terms of this Agreement:
(a) Consultant may conduct visual inspection of all areas of the Property and may
photograph same.
(b) Consultant may conduct only the tests described in this section, unless otherwise
authorized in writing by City which authorization may be granted, withheld or conditioned as City may
determine in its sole and absolute discretion. Authorized testing may include only (I) collection of surface
samples of soil from not deeper than 6 inches below the surface, (II) collection of paint samples from any
painted surface, and (III) lead based paint testing. If City does authorize additional testing, it will be subject to
all of the terms and conditions of this Instrument and any additional requirements stated in the written
authorization.
3. Consultant shall be required to coordinate its activities with City and any lessees, occupants
under management agreements and tenants (collectively referred to as "Occupant" or "Occupants ") which may
at any time occupy the Property pursuant to lease or agreement with City or City's predecessor in interest, or
authorized sublease thereunder, in order to minimize interference or disturbance with the operations of City, or
such Occupants. Such coordination shall require, at a minimum, observance of all ofthe following conditions:
:.\ t
(a) Except with respect to a short notice inspection on April 26, 2012, Consultant shall
provide to City at least 72 hours advance written notice of its intent to enter upon the Property. Consultant
shall also, on each day of entry, provide not less than 2 hours advance telephone notice of the time of arrival to
the City's designated Contact Person.
(b) All employees of Consultant and its subcontractors shall possess credentials verifying
their employment and present same to City officers, employees, Occupants, police officers and security
personnel upon demand.
(c) City has designated Bella Trujillo, Acting Assistant City Manager, 200 S. Main Street,
Pueblo Colorado, 81003, 719 -553 -2600, as City's Contact Person with respect to the Property. Consultant
shall not perform any excavation of test pits at any location upon the Property unless approval from Contact
Person for such location is so obtained.
(d) All activities performed on the Property by Consultant shall be scheduled during the
period between 7:00 o'clock a.m. and 4:30 o'clock p.m., according to the prevailing time then in effect,
Monday through Friday except during national or state holidays.
(e) With respect to each area under the control of an Occupant of City, Consultant shall
also make arrangements with such Occupant to schedule any entry into such area, and shall conduct its
activities so as not to interfere with the Occupant's activities or operations conducted anywhere upon the
Property.
(f) A representative of City or Contact Person, or both, shall be entitled to be present
during any entry upon the Property by Consultant, and shall be permitted to observe Consultant's activities
thereon.
(g) All entries upon the Property and all authorized inspections, tests, sampling,
procedures or other investigations performed upon the Property by Consultant shall be made and performed in
a manner calculated to minimize damage to the Property therefrom. Consultant shall promptly repair in a good
and workmanlike manner any damage to the Property arising or resulting from its actions or activities and it
shall restore the Property to the condition existing prior to the occurrence of such damage. Unless directed
otherwise by City, upon termination of access or expiration of the term hereof, Consultant shall fill and
revegetate any excavations or disturbed areas in a proper manner and as required by applicable laws,
regulations and permits.
(h) If any activities are conducted by subconsultants or subcontractors of Consultant,
Consultant shall require same to be bound by all the terms and conditions applicable to Consultant which are
set forth in this Agreement. Notwithstanding compliance with this paragraph, as to the City, Consultant shall
remain fully responsible for the acts and omissions of any such subconsultants and subcontractors.
4. Any testing, excavation, sampling or other activities which are authorized under paragraph 2
of this instrument or a separate written authorization and which are undertaken by Consultant upon or with
respect to the Property, shall be performed in a workmanlike and safe manner and in accordance with law and
approved methods. Consultant shall be responsible for the safety of its employees and agents while on the
Property, including the provision of any protective gear or equipment, and Consultant agrees to indemnify,
defend and hold harmless City, Contact Person and the officers, agents and employees of each, from all claims,
demands, suits, actions and proceedings of any kind or nature concerning or which relate to personal injury,
-2-
including death, of any employee, agent, or subcontractor of Consultant occurring upon or arising from the
condition of the Property, whether latent or patent, or from any activities conducted upon the Property
•• • '' , -• • • . . , - - . •r BA/
maitre.
5. (a) Prior to any entry upon the Property, Consultant shall procure, at Consultant's
expense, such insurance as will protect Consultant from claims under workers' compensation acts, claims for
damages because of personal injury including bodily injury, sickness, disease or death of any of Consultant's
employees or of any person other than Consultant's employees engaged in performance of work for Consultant
as subcontractor or independent contractor, and from claims or damages because of personal injury and injury
to or destruction of property including loss of use resulting therefrom; and such insurance will provide for
coverage in such amounts as set forth in subparagraph (b) of this paragraph.
(b) The minimum insurance coverage which Consultant shall obtain and keep in force is
as follows:
(i) Workers' Compensation Insurance complying with statutory requirements in
Colorado.
(ii) Commercial General and Automobile Liability Insurance with limits not less
than Six Hundred Thousand and No /100 Dollars ($600,000.00) per person and occurrence for
personal injury, including but not limited to death and bodily injury, Six Hundred Thousand and
No /100 Dollars ($600,000.00) per occurrence for property damage, and One Million and No /100
Dollars ($1,000,000.00) for excess umbrella liability.
(c) Consultant agrees to hold harmless, defend and indemnify City from and against any
liability to third parties, arising out of negligent acts, errors or omissions of Consultant, its employees,
subcontractors and subconsultants, if any.
6. The term of this instrument shall commence on the date first above written and shall expire
exactly forty-five (45) days later, unless extended by subsequent written instrument signed by the parties
hereto, or terminated earlier by City. City may, at any time, revoke or terminate the conditional grant of access
hereunder without cause. Upon expiration or termination, Consultant shall immediately remove its equipment,
repair all damage to the Property, and fill or repair any areas disturbed by Consultant unless and to the extent
otherwise directed by City. Consultant's obligations under this instrument to maintain insurance, to indemnify
City from various costs and liabilities, to provide logs of items collected and copies of data and reports, to
repair damage to the Property, and to clear and satisfy lien claims, shall all survive termination of the grant of
access. City shall have no liability whatsoever to Consultant on account of any such termination.
7. All data obtained by Consultant as a result of or derived from its inspection, collection, testing,
sampling or analysis of the Property, and all written reports, evaluations, test results, and environmental
assessment or characterization reports, whether in draft, interim or final form, produced by or on behalf of
Consultant and which relate to the Property, shall be submitted to City concurrently with the submission of
same to Client.
8. (a) Consultant shall comply with all federal, state and local laws and regulations that are
-3-
applicable to Consultant's activities upon the Property, including but not limited to environmental laws and
regulations. No action or activity shall be undertaken by the Consultant, its employees, agents, or
subcontractors, if any, on any portion of the Property which would cause or permit: (i) the presence, use,
generation, release, discharge, storage or disposal of any hazardous material in, on, under, about or from the
Property or any part thereof in violation of any environmental law or regulation; (ii) any portion of the Property
to become a hazardous waste treatment, storage or disposal facility without receiving authorization from the
City, proper governmental authorization, and in compliance with all environmental laws and regulations; or
(iii) the discharge of pollutants or effluents into any storm sewer, sanitary sewer, street or roadway, or any
water source or system, or the discharge into the air of any emissions without receiving proper governmental
authorization, and in compliance with all environmental laws and regulations, including without limitation, the
Federal Water Pollution Control Act, 33 USC §1251, et seq., and the Clean Air Act, 42 USC §7401, et seq.
(b) Consultant agrees to indemnify and forever hold harmless City, Occupants, and the
agents, successors and assigns of City and Occupants, from all claims, losses, damages, expenses and costs,
including but not limited to attorney fees, and remedial and cleanup costs, incurred by reason of the use,
if DV storage, generation, release, discharge, maintenance, disposal or removal of hazardous materials in, on, under,
t0 out or from the Property, or any part thereof, by Consultant, its employees, agents, contractors and
0 0S11 1 0 1 subcontractor Consultant shall not be liable for pre- existing conditions. The provisions of this paragraph 8
I' ` /;�ashall survive th expiration of the term of this instrument and shall survive termination of the conditional grant
W �`� of access and this instrument.
Q �Z (c) City shall not be liable for any costs, fees or expenses incurred by virtue of
Consultant's activities upon the Property. Consultant expressly waives and agrees that it shall have no right to
avail itself of any remedies under any mechanic lien law or public project or "little Miller Act" statutes, or
similar laws, and that it shall not file any statement or affidavit of lien or verified claim with respect to the
Property. In the event of the recordation of any statement, claim or affidavit asserting any claim of lien upon
the Property arising from or relating to the actions or activities of Consultant authorized by this instrument, or
arising from or relating to the actions or activities of Consultant's employees, agents or subcontractors,
Consultant shall promptly satisfy and discharge the same at Consultant's sole cost and expense.
(d) In the event Consultant fails to promptly make any repair required by this instrument,
or to satisfy and discharge any claim of lien upon the Property as required by this instrument, upon ten (10)
days written notice to Consultant, City may effect the repair or cause the claim of lien to be extinguished or
satisfied, and all sums expended by City in doing so (including, without limitation, attorney fees), plus interest
thereon at the rate of twelve percent (12 %) per annum from the date such sums were expended by City until
the date of repayment by Consultant, shall be due and payable to City upon demand.
9. This instrument sets forth the complete agreement and understanding of the parties with
respect to access to the Property necessary for Consultant to conduct environmental studies that its Client
deems necessary and supersedes any prior or contemporaneous oral or written agreements or understandings
between the parties with respect to such access.
10. No amendment to this instrument shall be made nor be enforceable unless made by written
amendment signed by an authorized representative of each of the parties. This provision may not be waived
except by a writing signed by all parties.
11. This instrument shall be governed and interpreted in accordance with the laws of the State of
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A
i i,-_
ti
Colorado.
12. Any dispute or disagreement between the parties arising from or related to this instrument
shall be determined and decided by a court of competent jurisdiction located in Pueblo County, Colorado.
13. The persons executing this instrument on behalf of Consultant each represent and warrant that
they have full authority to execute this instrument on behalf of, and to contractually obligate, the party for
whom they are signing this instrument.
IN WITNESS WHEREOF, the parties have made and executed this instrument the day and year first
above written.
CITY O'' 'UEBLO,
ATTEST: A MUNI IP • PORATION
By Q
City rk City an ger
M. A. MORTENSO O ■ • ' Y
By t
Name: B•00 144/�)
0 Title: VP t C,1
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CONSENT TO ENTRY
d APAtif
THIS INSTRUMENT is made and entered into this 26th daW riI 12 by and between Ad *
innesota corporation, doing business as Morten on- hereinafter referred
to as "Consultant "), and the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City").
WHEREAS, City owns a parcel of land and industrial building located on Lots 46 and 47, Pueblo
Memorial Airport Subdivision, City of Pueblo, State of Colorado, also known as 1 McDonnell Douglas Street,
Pueblo, Colorado, 81001 (the "Property"); and
WHEREAS, Consultant desires to enter and inspect the Property on behalf of an undisclosed client
(the "Client') in connection with the possible lease or purchase of the Property; and
WHEREAS, City is willing to allow such entry and inspection subject to observance of the terms and
conditions sets forth herein, which the parties agree and acknowledge are for the protection of the City, are not
mere recitals, and are contractually binding and enforceable.
NOW, THEREFORE, in consideration of the foregoing recitals and the terms and conditions set forth
herein, the parties agree as follows:
1. Conditional Consent. After execution of this Instrument by all of the parties hereto and
deposit ofa fully executed duplicate original of this Instrument with an authorized representative of City, and
until either (a) expiration of the term of this Instrument, or (b) earlier termination as provided herein,
Consultant, its subcontractors and the employees of each, may enter upon the Property upon advance notice to
City at reasonable hours in order to perform those activities authorized below in compliance with all of the
terms, conditions and restrictions set forth in this Instrument. All references to "Consultant" herein shall apply
to its subcontractors and employees who enter the Property, and Consultant shall make the same aware of the
requirements of this Instrument.
2. Authorized Activities. Consultant is authorized only to conduct the following activities upon
the Property in compliance with the terms of this Agreement:
(a) Consultant may conduct visual inspection of all areas of the Property and may
photograph same.
(b) Consultant may conduct only the tests described in this section, unless otherwise
authorized in writing by City which authorization may be granted, withheld or conditioned as City may
determine in its sole and absolute discretion. Authorized testing may include only (I) collection of surface
samples of soil from not deeper than 6 inches below the surface, (II) collection of paint samples from any
painted surface, and (III) lead based paint testing. If City does authorize additional testing, it will be subject to
all of the terms and conditions of this Instrument and any additional requirements stated in the written
authorization.
3. Consultant shall be required to coordinate its activities with City and any lessees, occupants
under management agreements and tenants (collectively referred to as "Occupant" or "Occupants ") which may
at any time occupy the Property pursuant to lease or agreement with City or City's predecessor in interest, or
authorized sublease thereunder, in order to minimize interference or disturbance with the operations of City, or
such Occupants. Such coordination shall require, at a minimum, observance of all of the following conditions:
4 ,
(a) Except with respect to a short notice inspection on April 26, 2012, Consultant shall
provide to City at least 72 hours advance written notice of its intent to enter upon the Property. Consultant
shall also, on each day of entry, provide not less than 2 hours advance telephone notice of the time of arrival to
the City's designated Contact Person.
(b) All employees of Consultant and its subcontractors shall possess credentials verifying
their employment and present same to City officers, employees, Occupants, police officers and security
personnel upon demand.
(c) City has designated Bella Trujillo, Acting Assistant City Manager, 200 S. Main Street,
Pueblo Colorado, 81003, 719 -553 -2600, as City's Contact Person with respect to the Property. Consultant
shall not perform any excavation of test pits at any location upon the Property unless approval from Contact
Person for such location is so obtained.
(d) All activities performed on the Property by Consultant shall be scheduled during the
period between 7:00 o'clock a.m. and 4:30 o'clock p.m., according to the prevailing time then in effect,
Monday through Friday except during national or state holidays.
(e) With respect to each area under the control of an Occupant of City, Consultant shall
also make arrangements with such Occupant to schedule any entry into such area, and shall conduct its
activities so as not to interfere with the Occupant's activities or operations conducted anywhere upon the
Property.
(f) A representative of City or Contact Person, or both, shall be entitled to be present
during any entry upon the Property by Consultant, and shall be permitted to observe Consultant's activities
thereon.
(g) All entries upon the Property and all authorized inspections, tests, sampling,
procedures or other investigations performed upon the Property by Consultant shall be made and performed in
a manner calculated to minimize damage to the Property therefrom. Consultant shall promptly repair in a good
and workmanlike manner any damage to the Property arising or resulting from its actions or activities and it
shall restore the Property to the condition existing prior to the occurrence of such damage. Unless directed
otherwise by City, upon termination of access or expiration of the term hereof, Consultant shall fill and
revegetate any excavations or disturbed areas in a proper manner and as required by applicable laws,
regulations and permits.
(h) If any activities are conducted by subconsultants or subcontractors of Consultant,
Consultant shall require same to be bound by all the terms and conditions applicable to Consultant which are
set forth in this Agreement. Notwithstanding compliance with this paragraph, as to the City, Consultant shall
remain fully responsible for the acts and omissions of any such subconsultants and subcontractors.
4. Any testing, excavation, sampling or other activities which are authorized under paragraph 2
of this instrument or a separate written authorization and which are undertaken by Consultant upon or with
respect to the Property, shall be performed in a workmanlike and safe manner and in accordance with law and
approved methods. Consultant shall be responsible for the safety of its employees and agents while on the
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Property, including the provision of any protective gear or equipment, and Consultant agrees to indemnify,
defend and hold harmless City, Contact Person and the officers, agents and employees of each, from all claims,
demands, suits, actions and proceedings of any kind or nature concerning or which relate to personal injury,
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including death, of any employee, agent, or subcontractor of Consultant occurring upon or arising from the
condition of the Property, whether latent or patent, or from any activities conducted upon the Property,
Contact Person, or any Occupant or other lessee, tenant or invitee of
City, or by any employee, agent or contractor of City, Contact Person or such Occupant, lessee, tenant or
invitee.
5. (a) Prior to any entry upon the Property, Consultant shall procure, at Consultant's
expense, such insurance as will protect Consultant from claims under workers' compensation acts, claims for
damages because of personal injury including bodily injury, sickness, disease or death of any of Consultant's
employees or of any person other than Consultant's employees engaged in performance of work for Consultant
as subcontractor or independent contractor, and from claims or damages because of personal injury and injury
to or destruction of property including loss of use resulting therefrom; and such insurance will provide for
coverage in such amounts as set forth in subparagraph (b) of this paragraph.
(b) The minimum insurance coverage which Consultant shall obtain and keep in force is
as follows:
(i) Workers' Compensation Insurance complying with statutory requirements in
Colorado.
(ii) Commercial General and Automobile Liability Insurance with limits not less
than Six Hundred Thousand and No /100 Dollars ($600,000.00) per person and occurrence for
personal injury, including but not limited to death and bodily injury, Six Hundred Thousand and
No /100 Dollars ($600,000.00) per occurrence for property damage, and One Million and No /100
Dollars ($1,000,000.00) for excess umbrella liability.
(c) Consultant agrees to hold harmless, defend and indemnify City from and against any
liability to third parties, arising out of negligent acts, errors or omissions of Consultant, its employees,
subcontractors and subconsultants, if any.
6. The term of this instrument shall commence on the date first above written and shall expire
exactly forty-five (45) days later, unless extended by subsequent written instrument signed by the parties
hereto, or terminated earlier by City. City may, at any time, revoke or terminate the conditional grant of access
hereunder without cause. Upon expiration or termination, Consultant shall immediately remove its equipment,
repair all damage to the Property, and fill or repair any areas disturbed by Consultant unless and to the extent
otherwise directed by City. Consultant's obligations under this instrument to maintain insurance, to indemnify
City from various costs and liabilities, to provide logs of items collected and copies of data and reports, to
repair damage to the Property, and to clear and satisfy lien claims, shall all survive termination of the grant of
access. City shall have no liability whatsoever to Consultant on account of any such termination.
7. All data obtained by Consultant as a result of or derived from its inspection, collection, testing,
sampling or analysis of the Property, and all written reports, evaluations, test results, and environmental
assessment or characterization reports, whether in draft, interim or final form, produced by or on behalf of
Consultant and which relate to the Property, shall be submitted to City concurrently with the submission of
same to Client.
8. (a) Consultant shall comply with all federal, state and local laws and regulations that are
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applicable to Consultant's activities upon the Property, including but not limited to environmental laws and
regulations. No action or activity shall be undertaken by the Consultant, its employees, agents, or
subcontractors, if any, on any portion of the Property which would cause or permit: (i) the presence, use,
generation, release, discharge, storage or disposal of any hazardous material in, on, under, about or from the
Property or any part thereof in violation of any environmental law or regulation; (ii) any portion of the Property
to become a hazardous waste treatment, storage or disposal facility without receiving authorization from the
City, proper governmental authorization, and in compliance with all environmental laws and regulations; or
(iii) the discharge of pollutants or effluents into any storm sewer, sanitary sewer, street or roadway, or any
water source or system, or the discharge into the air of any emissions without receiving proper governmental
authorization, and in compliance with all environmental laws and regulations, including without limitation, the
Federal Water Pollution Control Act, 33 USC §1251, et seq., and the Clean Air Act, 42 USC §7401, et seg.
(b) Consultant agrees to indemnify and hold harmless City, Occupants, and the
agents, successors and assigns of City and Occupants, from all claims, losses, damages, expenses and costs,
including but not limited to attorney fees, and remedial and cleanup costs, incurred by reason of the use,
storage, generation, release, discharge, maintenance, disposal or removal of hazardous materials in, on, under,
about or from the Property, or any part thereof, by Consultant, its employees, agents, contractors and
subcontractors. Consultant shall not be liable for pre- existing conditions. The provisions of this paragraph 8
shall survive the expiration of the term of this instrument and shall survive termination of the conditional grant
of access under this instrument.
(c) City shall not be liable for any costs, fees or expenses incurred by virtue of
Consultant's activities upon the Property. Consultant expressly waives and agrees that it shall have no right to
avail itself of any remedies under any mechanic lien law or public project or "little Miller Act" statutes, or
similar laws, and that it shall not file any statement or affidavit of lien or verified claim with respect to the
Property. In the event of the recordation of any statement, claim or affidavit asserting any claim of lien upon
the Property arising from or relating to the actions or activities of Consultant authorized by this instrument, or
arising from or relating to the actions or activities of Consultant's employees, agents or subcontractors,
Consultant shall promptly satisfy and discharge the same at Consultant's sole cost and expense.
(d) In the event Consultant fails to promptly make any repair required by this instrument,
or to satisfy and discharge any claim of lien upon the Property as required by this instrument, upon ten (10)
days written notice to Consultant, City may effect the repair or cause the claim of lien to be extinguished or
satisfied, and all sums expended by City in doing so (including, without limitation, attorney fees), plus interest
thereon at the rate of twelve percent (12 %) per annum from the date such sums were expended by City until
the date of repayment by Consultant, shall be due and payable to City upon demand.
9. This instrument sets forth the complete agreement and understanding of the parties with
respect to access to the Property necessary for Consultant to conduct environmental studies that its Client
deems necessary and supersedes any prior or contemporaneous oral or written agreements or understandings
between the parties with respect to such access.
10. No amendment to this instrument shall be made nor be enforceable unless made by written
amendment signed by an authorized representative of each of the parties. This provision may not be waived
except by a writing signed by all parties.
11. This instrument shall be governed and interpreted in accordance with the laws of the State of
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Colorado.
12. Any dispute or disagreement between the parties arising from or related to this instrument
shall be determined and decided by a court of competent jurisdiction located in Pueblo County, Colorado.
13. The persons executing this instrument on behalf of Consultant each represent and warrant that
they have full authority to execute this instrument on behalf of, and to contractually obligate, the party for
whom they are signing this instrument.
IN WITNESS WHERE OF, the parties have made and executed this instrument the day and year first
above written.
CI ::4. EBL
ATTEST: a • "ORATION
ORATION
By ti_s
City Jerk City age
s+aror
BY
Y Name: , 54 tralK
Title: 152 03 /V
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