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.