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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