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HomeMy WebLinkAbout12912 RESOLUTION NO. 12912 A RESOLUTION AUTHORIZING $39,635.16 TO BE PAID TO LEGACY BANK FOR IMPROVEMENTS COMPLETED IN THE WALKING STICK SUBDIVISION WHEREAS, in November 1994, the City of Pueblo entered into an escrow agreement with Walking Stick U.S. Limited Partnership, a Colorado Limited Partnership, and; WHEREAS, the Walking Stick Development has changed successors many times, Legacy Bank is the current successor, and; WHEREAS, there is adequate funds available in the Walking Stick subdivision escrow account for improvements, and; WHEREAS, some Subdivision improvements have been completed in the Walking Stick Development, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. $39,635.16 shall be used to pay Legacy Bank, the current successor, for completed improvements in the Walking Stick Development SECTION 2. Funds for improvements shall be paid from Escrow Account number DE4822 – Holystone Improvement Escrow and DE 4828 – Walking Stick Estates, Filing 2. SECTION 3. The Purchasing Agent is hereby authorized to execute said contract on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. SECTION 4. This Resolution shall become effective immediately upon passage and approval. INTRODUCED: _ March 24, 2014 BY: Chris Nicoll COUNCILPERSON City Clerk’s Office Item # M-2 REGULAR MEETING AGENDA ITEM COUNCIL MEETING DATE: March 24, 2014 TO: President Sandra K. Daff and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Earl Wilkinson, Director of Public Works SUBJECT: A RESOLUTION AUTHORIZING $39,635.16 TO BE PAID TO LEGACY BANK FOR IMPROVEMENTS COMPLETED IN THE WALKING STICK SUBDIVISION SUMMARY: Attached is an invoice from Legacy Bank for work completed in the Walking Stick Development. PREVIOUS COUNCIL ACTION: October 12, 1993 – Ordinance 5833 – “AN ORDINANCE APPROVING A CONTRACT AND ESCROW AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND HOLYSTONE CORPORATION, A COLORADO CORPORATION, RELATING TO THE DEVLOPMENT OF WALKING STICK MASTER PLAN AREA AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE SAME” November 28, 1994 – Resolution 7512 - “A RESOLUTION APPROVING A CONTRACT AND ESCROW AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND WALKING STICK U.S. LIMITED PARTNERSHIP, A COLORADO LIMITED PARTNERSHIP, RELATING TO THE DEVELOPMENT OF WALKING STICK MASTER PLAN AREA AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE THE SAME” BACKGROUND: In November 1994, City Council approved an Ordinance entering into an escrow agreement with Walking Stick U.S. Limited Partnership, a Colorado Limited Partnership, for subdivision improvements in the Walking Stick Development. The escrow was to be held as security for the construction and improvements of the Walking Stick Subdivision. The Walking Stick Development has changed successors many times, and Legacy Bank is the current successor. According to Section A, Paragraph 4 of the Contract, “If Holystone for whatever reason ceases to be the developer of the Master Plan Area, Holystone’s right, title and interest in and to the escrow account shall automatically terminate, except to the extent Holystone is entitled to reimbursement under Paragraph 4 hereof.” Due to language in the contract, Legacy Bank is not entitled to funds in the escrow account, although they are the current successor and have completed subdivision improvements. Public Works would like to pay the successor out of the Walking Stick escrow account, for the completed work. FINANCIAL IMPLICATIONS: Funds for completed improvements will come from DE4822 – Holystone Improvement Escrow and DE4828 – Walking Stick Estates, Filing 2. BOARD/COMMISSION RECOMMENDATION: None. STAKEHOLDER PROCESS: The City of Pueblo Construction Engineer and Public Works Director have worked with Legacy Bank and Wisdom Properties to discuss options available. The Public Works Director and the City Attorney Office have reviewed and agree that the escrow accounts can be paid to the successor through a resolution. ALTERNATIVES: There are two options available for the City. Option 1 would be to not reimburse the developer for completed improvements and risk legal ramifications. Option 2 would be to pay the current successor for improvements completed. RECOMMENDATION: Approval of this Resolution. PROPOSED MOTION: This Resolution will be placed on the March 24, 2014 Consent Agenda. Attachments: Holystone Corporation contract dated October 25, 1993 Walking Stick Escrow agreement dated November 28, 1994 Invoices from Legacy Bank