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Home My WebLink About08801 ORDINANCE NO. 8801 AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO AND ESTABLISHING CRITERIA, STANDARDS, RULES AND REGULATIONS FOR THE APPROPRIATION AND EXPENDITURE OF FUNDS IN THE 1992-2016 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND WHEREAS, the people of the City of Pueblo have repeatedly extended the one half percent sales and use tax rate for job-creating projects within the City and the Pueblo Memorial Airport Industrial Park; and WHEREAS, the people of Pueblo by Ordinance Numbers 5668, 5978 and 8197 have authorized and directed the City Council to establish by ordinance the criteria, standards, rules and regulations for the appropriation and expenditure of revenues contained within the 1992- 2016 Sales and Use Tax Capital Improvement Fund (the “Fund”); and 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 will allow the development of unique projects not otherwise financially feasible except for the use of new state sales tax revenue; and WHEREAS, local funds are necessary in order to ensure that the RTA incremental state sales tax revenues are available to the City for the Project. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Chapter 4 of Title XIV of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 14-4-85.1. Sales and Use Tax Capital Improvement Project Fund; definitions. . . . (2) Capital improvement project or project means a project or improvement of a permanent or fixed nature and includes the acquisition of property (both real property and tangible personal property, except inventory or property held for sale to customers in the ordinary course of business), the construction, extension, remodeling or rehabilitation of buildings or structures within which individuals are customarily employed or which are customarily used to house machinery or equipment, and the installation or extension of streets, sanitary sewer, water or other utilities required to serve a project. Capital improvement or also means a regional tourism project, approved by the project project Colorado Economic Development Commission, which qualifies for state sales tax increment revenue pursuant to the Colorado Regional Tourism Act, C.R.S. 24-46-301 et seq. . . . (7) Primary job means a full-time position in private sector employment by manufacturing, business, commercial or service industries producing, assembling or distributing products or providing services primarily or ultimately for sale, consumption, or use outside of the City and County of Pueblo, also means employment resulting from a regional Colorado. Primary job tourism project, approved by the Colorado Economic Development Commission, which qualifies for state sales tax increment revenue pursuant to the Colorado Regional Tourism Act, C.R.S. 24-46-301 et seq. 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 Ordinance to effectuate the policies and procedures described herein. SECTION 3. This Ordinance shall become effective immediately upon final passage. INTRODUCED: November 24, 2014 BY: Eva Montoya PASSED AND APPROVED: December 8, 2014 City Clerk’s Office Item R-3 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 24, 2014 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Gina Dutcher, City Clerk FROM: Dennis E. Flores, Councilmember SUBJECT: AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO AND ESTABLISHING CRITERIA, STANDARDS, RULES AND REGULATIONS FOR THE APPROPRIATION AND EXPENDITURE OF FUNDS IN THE 1992-2016 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND SUMMARY: Attached is a proposed Ordinance which expands the definition of “primary job” and “capital improvement project” and “project” to include employment resulting from the City’s Regional Tourism Project (approved by the Colorado Economic Development Commission) which qualifies for state sales tax increment revenue pursuant to the Colorado Regional Tourism Act, C.R.S. §24-46-301 et seq. PREVIOUS COUNCIL ACTION: The Half-Cent Sales Tax Criteria Ordinance was last amended by City Council by Ordinance No. 8509, dated September 10, 2012. BACKGROUND: The 1992-2016 Sales and Use Tax Capital Improvement Project Fund (the “Fund”), commonly referred to as the “half-cent tax fund,” was established by the voters of the City years ago and has been extended several times, for the purpose of funding job-creating projects within the City. By voter-approved Ordinance 8197 (2010) City voters also delegated to City Council the authority and responsibility to initially establish and then amend, by ordinance, appropriate criteria, standards, rules and regulations for the appropriation and expenditure of monies in the Fund. FINANCIAL IMPLICATIONS: The Fund currently contains in excess of $30 million in unobligated monies. The proposed ordinance would authorize Council to spend half-cent sales tax funds, either through a loan or a direct investment in the RTA Project, without a concurrent job commitment. BOARD/COMMISSION RECOMMENDATION: Not applicable to this ordinance. STAKEHOLDER PROCESS: Funding for the RTA Project has been the subject of numerous work sessions and regular meetings of the City Council during the past year. ALTERNATIVES: Without this ordinance, the loan or expenditure of half-cent sales tax funds in support of the RTA Project would violate the Criteria Ordinance as currently drafted. RECOMMENDATION: The Boards of the Pueblo Urban Renewal Authority, the Pueblo Economic Development Corporation and the Pueblo Chamber of Commerce support this proposed ordinance. Attachments: Proposed ordinance.