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Home My WebLink About13338RESOLUTION NO. 13338 A RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION, RELATING TO A JOB CREATING CAPITAL 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 November 23, 2015 between Pueblo, a municipal corporation and the Pueblo Development Foundation, a Colorado non-profit corporation (“PDF”), relating to a job creating capital improvement project, a copy of which is attached hereto, 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 to Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and to 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 Agreement which are necessary or desirable to effectuate the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED: November 23, 2015 BY: Ed Brown City Clerk’s Office Item # M-6 Background Paper for Proposed Resolution COUNCIL MEETING DATE: November 23, 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 AN AMENDMENT TO AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION, RELATING TO A JOB CREATING CAPITAL IMPROVEMENT PROJECT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAID AMENDMENT SUMMARY: Attached is a Resolution approving and authorizing the President of City Council to sign an Amendment to an Agreement with the Pueblo Development Foundation, a Colorado nonprofit corporation (“PDF”). PREVIOUS COUNCIL ACTION: On July 27, 2015, by Resolution No. 13284, City Council approved an Agreement with PDF which transferred up to $4.7 million from the Half-Cent Tax Fund to PDF, as follows:  Up to $3.1 million for the acquisition of land and construction of one so-called shell building within one of the industrial parks. The shell building shall be approximately 45,000 square feet in size with approximately 40,000 square feet allocated to manufacturing/warehouse space and approximately 5,000 square feet allocated for office space. After construction of the shell building, PDF agrees to convey title to the City.  Up to $100,000 for the acquisition of two development sites in the industrial parks. PDF agrees to prepare the unimproved sites for subsequent development by the extension of utility lines. After acquisition, PDF agrees to convey title to the two development sites to the City.  Up to $1,500,000 for the extension of fiber optic conduit within the industrial parks. Following construction and installation of the conduit, PDF agrees to convey title to the City. BACKGROUND: PDF was formed in 1964 as a Colorado nonprofit corporation to promote economic development within the City of Pueblo and the areas surrounding the City. For more than fifty years, PDF has helped start up businesses and assisted existing businesses in relocating to Pueblo County and thereby has acquired expertise in economic development. The City has planned the development of three industrial parks, i.e. Pueblo Memorial Airport Industrial Park; Minnequa Industrial Park and the St. Charles Industrial Park which are currently available for economic development and the relocation of new businesses to the Pueblo area. Section 14-4-85.5 of the Pueblo Municipal Code (“Criteria Ordinance”) provides that the City Council may authorize the expenditure of monies from the 1992-2016 Sales and Use Tax Capital Improvement Projects Fund (“Half-Cent Tax Fund”) for the acquisition of land; the construction of so-called shell buildings and for infrastructure improvements within the industrial parks. FINANCIAL IMPLICATIONS: PDF has agreed to perform the economic development tasks specified in the July 27, 2015 Agreement, but has requested a project management fee equal to one percent (1%) of expenditures, to cover PDF’s personnel expenses. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If this Resolution is not approved, the City will be required to recruit and hire another project manager. RECOMMENDATION: Approve this Resolution. Attachments: Proposed Resolution and Amendment AMENDMENT TO AGREEMENT THIS AMENDMENT TO AGREEMENT ("Amendment") entered into this 23rd day of November, 2015 between Pueblo, a municipal corporation (the "City") and Pueblo Development Foundation, a Colorado non-profit corporation ("PDF"). WHEREAS, on July 27, 2015, by Resolution No. 13284, City Council approved an Agreement with PDF which transferred up to $4.7 million from the Half-Cent Tax Fund to PDF, as follows: ® Up to $3.1 million for the acquisition of land and construction of one so-called shell building within one of the industrial parks. The shell building shall be approximately 45,000 square feet in size with approximately 40,000 square feet allocated to manufacturing/warehouse space and approximately 5,000 square feet allocated for office space. After construction of the shell building, PDF agrees to convey title to the City. • Up to $100,000 for the acquisition of two development sites in the industrial parks. PDF agrees to prepare the unimproved sites for subsequent development by the extension of utility lines. After acquisition, PDF agrees to convey title to the two development sites to the City. ® Up to $1,500,000 for the extension of fiber optic conduit within the industrial parks. Following construction and installation of the conduit, PDF agrees to convey title to the City; and WHEREAS, PDF has agreed to perform the economic development tasks specified in the July 27, 2015 Agreement, but has requested a project management fee equal to one percent (1%) of expenditures, to cover PDF's personnel expenses. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Company agree as follows: 1. The July 27, 2015 Agreement between the City and PDF shall be and hereby is amended, to include an additional Section, as follows: Section 16. Management Fee. All expenditures paid by PDF under this Agreement shall be limited to the projects described in Section 1 herein. PDF is entitled to retain a fee, equal to one percent (1%) of such expenditures, as reimbursement to PDF for its personnel costs incurred in managing the economic development projects specified in this Agreement. 1 2. The Agreement between the Parties, dated July 27, 2015, which is incorporated herein by this reference, shall remain in full force and effect, except as amended by this Amendment. Executed at Pueblo, Colorado, the day and year first above written. ' [\S_E A L f_ Pueblo, a Mud - •0 oration 41ag°7 A _tet - By .. lerk Presi• of the City Council [ SEAL] Pueblo Development Foundation a Colorado nonprofit corporation Attest: By /// Name: Name: / e/5E-,-/v7 L, A70, Title: Title: eAcA/ed-r---- 2