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HomeMy WebLinkAbout12575RESOLUTION NO. 12575 A RESOLUTION APPROVING THE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO DEVELOPMENT FOUNDATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID AGREEMENT AND TRANSFERRING $445,809 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 concludes that pursuant to an Agreement dated January 10, 2000 between the City of Pueblo and the Pueblo Development Foundation ("PDF"), PDF is the owner of real property and improvements located at 33654 United Avenue, Pueblo, CO, 81001 (Lot 58, Pueblo Memorial Airport Industrial Park Subdivision) (the "Property"). SECTION 2. The City Council further finds and determines: (a) The renovation of a manufacturing facility on land at the Pueblo Memorial Airport Industrial Park for lease to Westwind Wood Specialties, Inc. ("Company") meets and complies with the criteria and standards established by Section 14-4-85 of the Pueblo Municipal Code. (b) Pueblo Development Foundation will oversee and manage the renovation of the 25,650 square foot shell building on the approximately 5.57 acres of land at Pueblo Memorial Airport (herein "Project") to be leased and occupied by the Company. (c) Company believes it will employ and has committed to the City that it will employ ninety-one (91) full-time employees at the Project. (d) The renovation of the facility will stimulate and promote industrial activity at Pueblo Memorial Airport thereby creating employment opportunities for the citizens of the City and greater use of airport facilities. (e) The execution and performance of the Agreement between the City and Pueblo Development Foundation are in the best interests of the City and its citizens and will promote the public health, safety, commerce, prosperity and general welfare of the City and its citizens. SECTION 3. The Agreement dated as of January 14, 2013 between Pueblo, a Municipal Corporation, and Pueblo Development Foundation relating to the Property, a copy of which is attached hereto (“Agreement”), 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 the Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 4. Funds in the aggregate amount of $445,809 are hereby authorized to be transferred, expended and made available out of the 1992-2016 Sales and Use Tax Capital Improvement Projects Fund in the manner described in the Agreement. 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 $445,809 to PDF upon receipt of a copy of the January 14, 2013 Agreement executed by PDF. SECTION 5. The officers of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and attached Agreement to effectuate the transactions described therein. SECTION 6. This Resolution shall become effective upon final approval and passage. INTRODUCED: January 14, 2013 BY: Chris Kaufman COUNCILPERSON PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK Background Paper for Proposed RESOLUTION DATE: Q-2 JANUARY 14, 2013 AGENDA ITEM # DEPARTMENT: LAW DANIEL C. KOGOVSEK, CITY ATTORNEY TITLE A RESOLUTION APPROVING THE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND PUEBLO DEVELOPMENT FOUNDATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID AGREEMENT AND TRANSFERRING $445,809 FROM THE 1992-2016 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND THEREFOR ISSUE This Resolution approves an agreement between the City of Pueblo and PDF concerning Lot 58, Pueblo Memorial Airport Industrial Park Subdivision, Pueblo County, Colorado (the “Property”). This Property was conveyed to PDF by the City in 2000, under the terms of an earlier Agreement dated January 10, 2000 (the “2000 Agreement”) between the City and PDF, with respect to a project involving StoneCraft Industries. PDF renovated the Property for use by StoneCraft using PDF funds in the amount of $476,059 and $300,000 in funds from the one-half cent sales and use tax job creating capital projects improvement fund (the “1/2 Cent Jobs Fund”). The Property was leased with an option to purchase to StoneCraft. The lease terminated and StoneCraft did not acquire the Property. Under the 2000 Agreement, the Property was to be deeded back to the City and the City was to repay to PDF any unpaid renovation funds. PDF has not yet been repaid for the renovation funds it expended and the Property has not yet been reconveyed to the City. PDF has continued to pay costs related to the Property. There is now another company, Westwind Wood Specialties, Inc., that desires to lease the Property for a job creating capital improvements project. It would be preferable to have PDF continue to own the Property, lease it to Westwind Wood Specialties and manage and oversee the remodeling work needed for the new tenant. Therefore, the City would agree to pay PDF $445,809 from the ½ Cent Jobs Fund in satisfaction of the 2000 Agreement and for its expenses in owning the Property. PDF would continue to own the Property, will lease the Property with an option to purchase to Westwind Wood Specialties for 10 years and will manage the renovation of the Property, using $100,000 to be paid by the City from the ½ Cent Jobs Fund. PDF agrees to pay over to the City all rents under the lease, less 5% as reimbursement for its management of the Property. PDF’s obligations under the Agreement will be secured by a first deed of trust on the Property and the deed of trust currently in place on the Property securing the 2000 Agreement will be released. RECOMMENDATION PEDCO and PDF recommend approval of this Ordinance. FINANCIAL IMPACT Payment of $445,809 to PDF from ½ Cent Jobs Fund.