HomeMy WebLinkAbout13146RESOLUTION NO. 13146
A RESOLUTION APROVING A POPE BLOCK OPERATING
ACCOUNT AND AUTHORIZING THE TRANSFER OF FUNDS
FROM THE 1992-2016 SALES AND USE TAX CAPITAL
IMPROVEMENT PROJECTS FUND TO SAID ACCOUNT
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council finds and determines that the expenditure of funds from the 1992-2016
Sales and Use Tax Capital Improvement Projects Fund, for the purpose of maintaining the Pope
Block building and keeping said building available for use by future primary job employers,
meets and complies with the criteria and standards established by Ordinance No. 7836 and will
create employment opportunities justifying the expenditure of public funds.
SECTION 2.
The City Manager and the City’s Finance Director are authorized to establish a Pope
Block Operating Account for the purpose of depositing rent receipts and the payment of
operating expenses for the Pope Block building. Funds in the initial amount of $100,000 are
hereby authorized to be transferred out of the 1992-2016 Sales and Use Tax Capital
Improvement Projects Fund (“Half-Cent Sales Tax Fund”) to the Pope Block Operating Account.
Thereafter, the City Manager and the City’s Finance Director are authorized and directed to
transfer funds out of the City’s Half-Cent Sales Tax Fund as are necessary to maintain the Pope
Block building
SECTION 3.
The officers and staff of the City are directed and authorized to perform any and all acts
consistent with the intent of this Resolution, which are necessary or appropriate to effectuate the
transactions described herein.
SECTION 4.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: _ January 12, 2015
BY: Ami Nawrocki
City Clerk’s Office Item # M-5
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: January 12, 2015
TO: President Stephen G. Nawrocki 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 A POPE BLOCK OPERATING ACCOUNT AND
AUTHORIZING THE TRANSFER OF FUNDS FROM THE 1992-2016 SALES
AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND TO SAID
ACCOUNT
SUMMARY:
Attached is a resolution which authorizes the City Manager, City Finance Director and City staff
to establish a Pope Block Operating Account and authorizes the transfer of funds from the
1992-2016 Sales And Use Tax Capital Improvement Projects Fund (“Half-Cent Sales Tax
Fund”) to the Pope Block Operating Account..
PREVIOUS COUNCIL ACTION:
On January 27, 2014 by Resolution No. 12888, City Council approved the acquisition by the
City of the Pope Block from the PEDCO Foundation for a purchase price of ten dollars.
BACKGROUND:
The Pope Block was acquired from QualMed, Inc., a Delaware corporation and Foundation
Health Systems, Inc., a Delaware corporation on August 5, 1999 when title to the property was
placed in the name of the PEDCO Foundation, Inc., a Colorado non-profit corporation
(“Foundation”). Since 1999, the Foundation has leased portions of the property to various
tenants (including Receivables Management Services, Inc.) who have entered into employment
agreements with the City. The Foundation’s operating expenditures for the Pope Block have
exceeded the rent collected from tenants. The revenue shortfall has been paid by funds from
the Half-Cent Sales Tax Fund. Because the operating expenses of the Pope Block were being
paid by the City from the Half-Cent Sales Tax Fund, the City agreed with the Foundation that
the Pope Block should be transferred to the City.
It is anticipated that the operating expenditures for the Pope Block will continue to exceed the
rent collected from tenants. The Pope Block continues to be an attractive site for the location of
new primary job employers in the City. Therefore, it remains appropriate for the City to use
Half-Cent Sales Tax Funds to maintain the Pope Block, as allowed by the Criteria Ordinance.
FINANCIAL IMPLICATIONS:
The City will be liable for the operating expenses of the Pope Block to the extent that such
expenditures exceed the amount of rent collected. Under the Criteria Ordinance found at Sec.
14-4-85.1 of the Municipal Code, any “shortfall” is eligible for payment from the Half-Cent Sales
Tax Fund.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
Failure to create and fund an operating account for the Pope Block building will make
transparency and accountability more difficult for the Pope Block building.
RECOMMENDATION:
Approve the Resolution.
Attachments:
None.