HomeMy WebLinkAbout13044RESOLUTION NO. 13044
A RESOLUTION APPROVING AN AMENDMENT TO AN
AGREEMENT BETWEEN PUEBLO, A MUNICIPAL
CORPORATION, AND KURT MANUFACTURING CO., INC., A
MINNESOTA CORPORATION, RELATING TO A JOB
CREATING CAPTIAL IMPROVEMENT PROJECT AND
AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAID AMENDMENT
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Amendment to Agreement dated September 8, 2014 between Pueblo, a Municipal
Corporation, and Kurt Manufacturing Co., Inc, a Minnesota Corporation, relating to a job
creating capital improvement project, a copy of which is attached hereto (“Amendment”) 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 Amendment in the name of the City and the
City Clerk is directed to affix the seal of the City thereto and attest same.
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 and the attached Amendment to effectuate the
transactions described therein.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: September 8, 2014
BY: Ami Nawrocki
COUNCILPERSON
City Clerk’s Office Item # M-4
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: September 8, 2014
TO: President Sandra K. Daff and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT
BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND KURT
MANUFACTURING CO., INC., A MINNESOTA CORPORATION, RELATING TO
A JOB CREATING CAPTIAL IMPROVEMENT PROJECT AND AUTHORIZING
THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAID AMENDMENT
SUMMARY:
Attached is a proposed Resolution to authorize Kurt Manufacturing Co., Inc.’s (“Kurt
Manufacturing”) training efforts at Pueblo Community College (“PCC”). The Resolution does not
increase the economic incentives previously given to Kurt Manufacturing, but allows the
company, for training purposes, to use up to $63,000 of funds previously allocated.
PREVIOUS COUNCIL ACTION:
On December 9, 2013 by Resolution No. 12851, City Council approved an Agreement for the
creation of fifty-nine (59) new primary jobs in exchange for an economic incentive payment of
$1,475,000. The December 9, 2013 Agreement provided that the economic incentives would be
used exclusively by Kurt Manufacturing for the acquisition of manufacturing equipment.
BACKGROUND:
Kurt Manufacturing has recently made a request to the City, through PEDCO, to amend the
December 9, 2013 Agreement. The company is not requesting additional economic incentives
but is asking for permission to use up to $63,000 in half-cent sales tax funds for training
purposes. The maximum amount of funding for training purposes for each employee shall not
exceed $800.
FINANCIAL IMPLICATIONS:
None. No additional half-cent sales tax funds will be made available to Kurt Manufacturing.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
City staff has worked with PEDCO in connection with the Employment Agreement with Kurt
Manufacturing and this Amendment to the Agreement.
ALTERNATIVES:
Maintenance of the status quo which does not permit Kurt Manufacturing to use half-cent sales
tax funds for training purposes.
RECOMMENDATION:
PEDCO recommends approval of this Resolution.
Attachments:
Proposed Resolution and proposed Amendment to the Employment Agreement
with Kurt Manufacturing.
AMENDMENT TO AGREEMENT
This Amendment to Agreement is entered into this 8th day of September, 2014,
by and between the City of Pueblo, a municipal corporation ("City") and Kurt
Manufacturing Company, Inc., a Minnesota corporation (the "Company").
WHEREAS, City and Company entered into an agreement dated December 9,
2013 (the "Agreement") in which the City agreed to provide the Company with economic
incentives for the creation of additional primary jobs; and
WHEREAS, City and Company desire to modify certain terms and conditions of
the Agreement.
NOW THEREFORE in consideration of the foregoing recitals and the mutual
covenants contained herein, City and Company agree as follows:
1. Section 4 of the Agreement is modified by the addition of a new
subsection (c) to read as follows:
(c) As part of, and not in addition to, the Total Economic Incentives
(not to exceed U.S. $1,475,000), City agrees to reimburse Company in an
amount not to exceed U.S. $63,000, for the purpose of providing pre-employment
training of Company's prospective employees at Pueblo Community College,
Pueblo, Colorado ("PCC"). Company agrees to give persons successfully
completing the training program at PCC priority for hiring. The maximum amount
for training for each employee shall not exceed $800.
2. Except as expressly modified herein by this amendment, the Agreement
shall remain in full force and effect. Except as expressly modified herein, any
obligations remaining to be performed by City or Company under the Agreement are not
waived but shall be fully performed in accordance with the terms of the Agreement as it
existed prior to this amendment.
IN WITNESS WHEREOF City and Company have entered into this amendment the
date and year first written above.
Pueblo, a Municipal Corporation
Attest: Ct� .1� B /_I Ala •1- : 1 Ai��
City erk President of the City C• ' cil
"" DEANNA K JYLHA [SEAL]
s'�:" `s Notary Public
it' a State of Minnesota
4.:t s My Commission Expires January 31, 2018 pan Kurt ManufacturingCompany, a
y
Minnesota corporation
Attest k-- By Ae4 ) j�2' , �-CName:Dpn �.t vt(,t_ 1� , An iName: Steve Carlsen
Title: 4k-EL Y'4c na )v Title: President