HomeMy WebLinkAbout12986AS AMENDED: June 9, 2014
RESOLUTION NO. 12986
A RESOLUTION SUPPORTING THE ISSUANCE OF A
$11.9 MILLION BOND BY THE PUEBLO URBAN
RENEWAL AUTHORITY FOR THE CONSTRUCTION OF
THE PUEBLO PROFESSIONAL BULL RIDERS
UNIVERSITY
WHEREAS, the Colorado Economic Development Commission approved the
application of the City for a Regional Tourism Project described as the Pueblo
Professional Bull Riders University and the Heritage of Heroes Project (the “Project”)
pursuant to the Colorado Regional Tourism Act, C.R.S. 24-46-301 et seq. (“RTA”); and
WHEREAS, the Project will increase out-of-state tourism to the Pueblo area and
would allow the development of unique projects not otherwise financially feasible except
for the use of new state sales tax revenue; and
WHEREAS, the Colorado Economic Development Commission approved the
dedication of a certain percentage (24.7%) of state sales tax increment revenue in the
financial plan of the Regional Tourism Project, and in reliance on receipt of those funds,
the Pueblo Urban Renewal Authority may issue bonds to finance eligible improvements
of the Project; and
WHEREAS, because of the economic development potential of the RTA Project,
it is proper for City Council to support the issuance of a $11.9 million bond by the
Pueblo Urban Renewal Authority for the construction of the Pueblo Professional Bull
Riders University; and
WHEREAS, the Pueblo Urban Renewal Authority may issue Bonds in its
discretion to Finance any eligible improvement with respect to the Pueblo Professional
Bull Riders University and Heritage of Heroes Project in accordance with Resolution No.
1 of the Colorado Economic Development Commission Section 3N, Bonds; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City hereby supports the issuance of a $11.9 million bond by the Pueblo
Urban Renewal Authority, with bond proceeds to be used to construct the Pueblo
Professional Bull Riders University in compliance with Phase 1 of the RTA grant
agreement.
SECTION 2.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Resolution to effectuate the transactions
described herein.
SECTION 3.
This Resolution shall become effective immediately upon passage and approval.
INTRODUCED: June 9, 2014
BY: Steve Nawrocki
COUNCILPERSON
AS AMENDED: June 9, 2014
City Clerk’s Office Item # Q-2
Background Paper for Proposed Resolution
COUNCIL MEETING DATE: June 9, 2014
TO: President Sandra K. Daff and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Council Members Ami Nawrocki and Chris Kaufman
SUBJECT: A RESOLUTION SUPPORTING THE ISSUANCE OF A $11.9 MILLION
BOND BY THE PUEBLO URBAN RENEWAL AUTHORITY FOR THE
CONSTRUCTION OF THE PUEBLO PROFESSIONAL BULL RIDERS
UNIVERSITY
SUMMARY:
Attached is a proposed Resolution supporting the issuance of a $11.9 million bond for
construction of the Pueblo Professional Bull Riders University, as proposed in Phase I
of the Regional Tourism Act (“RTA”) Project.
PREVIOUS COUNCIL ACTION:
On January 27, 2014, by Resolution No. 12889, Council encumbered $14.4 million of
Half Cent Sales Tax funds for the RTA Project and authorized the expenditure of said
funds provided that the City simultaneously enter into an appropriate employment
agreement with a new major employer, yet to be determined, with a seven-year
employment commitment for a significant number of new primary jobs within the RTA
Project area.
By its own terms, Resolution No. 12899 expired because the new employment
agreement with a new major employer was not executed within one hundred twenty
(120) days (by May 27, 2014). The encumbrance was terminated effective May 27,
2014 and the $14.4 million in encumbered funds have reverted to the Half Cent Sales
Tax Fund.
BACKGROUND:
This Resolution supports the issuance by the Pueblo Urban Renewal Authority
(“PURA”) of a $11.9 million bond for construction of the Pueblo Professional Bull Riders
University segment of the RTA Project without the requirement that other Phase I
projects be constructed simultaneously.
FINANCIAL IMPLICATIONS:
Up to a $11.9 million bond may be issued by PURA to finance the construction of the
Pueblo Professional Bull Riders University segmentof the RTA Project.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Members of the public are the primary stakeholders affected by the proposed
Ordinance. The issue of RTA Project funding has been discussed at numerous public
Council meetings and work sessions during the past year.
ALTERNATIVES:
If the Resolution is not approved, the financing options for the RTA Project will remain
unresolved.
RECOMMENDATION:
Council President Sandra K. Daff and Council members Ami Nawrocki and Chris
Kaufman recommend approval of this Resolution.