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HomeMy WebLinkAbout12576RESOLUTION NO. 12576 A RESOLUTION APPROVING THE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND WESTWIND WOOD SPECIALTIES, INC. AND THE PUEBLO DEVELOPMENT FOUNDATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID AGREEMENT, AND TRANSFERRING $100,000 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 $100,000 for the job creating capital improvement project with Westwind Wood Specialties, Inc. ("Company") described in the attached Agreement, meets and complies with the criteria and standards established by Pueblo Municipal Code Section 14-4-85 and will create employment opportunities justifying the expenditure of public funds. SECTION 2. The City Council further finds and determines that $810,000 in the form of a rent subsidy and purchase price concession when the Company purchases the facility after ten (10) years, described in the attached Agreement, meets and complies with the criteria and standards established by Pueblo Municipal Code Section 14-4-85 and will create employment opportunities justifying the expenditure of public funds. SECTION 3. The Agreement dated as of January 14, 2013 between Pueblo, a Municipal Corporation and Westwind Wood Specialties, Inc. and the Pueblo Development Foundation ("PDF") relating to a job creating capital improvement project, 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. Section 14-4-85 of the Pueblo Municipal Code contemplates that new employers, such as the Company, shall have two (2) years in which to create additional jobs within the City. City Council hereby finds and concludes that, in this case, a variance from the criteria and standards ordinance is appropriate due to the ongoing national economic recession. Company is hereby granted three (3) years from the beginning date of its operations to meet its employment commitment of ninety-one (91) new, full-time employees at its Pueblo facility. SECTION 5. Funds in the aggregate amount of $100,000 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 the job creating capital improvement project and 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 $100,000 to PDF for remodeling and renovation of the manufacturing facility located at 33654 United Avenue, Pueblo, CO, 81001, upon compliance by PDF and Company with Section 2 of the Agreement and after receipt by the Director of written requests for payment in compliance with Section 2 of the Agreement. SECTION 6. 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 7. This Resolution shall become effective upon final approval and passage. INTRODUCED: January 14, 2013 BY: Sandy Daff COUNCILPERSON PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK Background Paper for Proposed RESOLUTION DATE: # Q-3 JANUARY 14, 2013 AGENDA ITEM DEPARTMENT: LAW DANIEL C. KOGOVSEK, CITY ATTORNEY TITLE A RESOLUTION APPROVING THE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND WESTWIND WOOD SPECIALTIES, INC. AND THE PUEBLO DEVELOPMENT FOUNDATION RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT, AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAID AGREEMENT, AND TRANSFERRING $100,000 FROM THE 1992-2016 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND THEREFOR ISSUE This Resolution approves an agreement between the City of Pueblo, Westwind Wood Specialties, Inc. (the “Company”) and PDF, by which the Company agrees to locate a manufacturing facility at Lot 58, Pueblo Memorial Airport Industrial Park Subdivision (“Facility”) on property it would lease, with an option to purchase. The Company would commit to invest not less than $2,000,000 in fixed assets at the Facility; and to employ not less than 30 full-time employees during its first year of operations; 51 full-time employees during its second year of operations and 91 full-time employees during its third year through tenth year of operations at the Facility. In exchange, the City would agree to provide, from the one-half cent sales and use tax job creating capital projects improvement fund (the “1/2 Cent Jobs Fund”), up to $100,000 to renovate the Facility, and a rent subsidy to Company of $810,000 over the course of its ten year lease of the Facility property, for a total of $910,000 from the ½ Cent Jobs Fund. The Facility property is currently owned by PDF and PDF would agree to perform the renovation work at the Facility, to the lease the Facility to the Company, and to remit the rents paid by the Company to the City, less 5% which would be retained by PDF in consideration of its management of the Facility. RECOMMENDATION The PEDCO and PDF recommend approval of this Ordinance. FINANCIAL IMPACT $100,000 from ½ Cent Jobs Fund to renovate the facility. $810,000 in rent subsidy and purchase price concession when Westwind Wood Specialties purchases the facility after ten (10) years.