HomeMy WebLinkAbout13412*
City Clerk’s Office Item # M-3
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: April 11, 2016
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 EMPLOYMENT
AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND CBD
BIOSCIENCES, LLC, A COLORADO LIMITED LIABILITY COMPANY 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 Employment Agreement with CBD Biosciences, LLC, a Colorado limited liability
company (the “Company”). The Amendment extends the “closing” date of the economic
incentives agreement from March 1, 2016 until July 1, 2016.
PREVIOUS COUNCIL ACTION:
On October 26, 2015, Council approved a Resolution transferring $7,890,000 from the 1992 –
2021 Sales and Use Tax Capital Improvement Projects Fund for the benefit of the Company.
BACKGROUND:
The Company’s business plan as it pertains to Pueblo County, is centered on the manufacture of
hemp oil for distribution outside of Pueblo County. Issues have arisen concerning the appropriate
regulatory approval for the manufacture of hemp oil. A four month extension of the “closing” date
will permit the Company to attempt to resolve any regulatory issues.
FINANCIAL IMPLICATIONS:
There will be no financial impact on the City if Council approves the extension of the “closing”
date by four months.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
The Company requires a “timeout” from the employment agreement in order to attempt to resolve
certain regulatory issues.
RECOMMENDATION:
The Pueblo Economic Development Corporation recommends approval of this Resolution.
Attachments: Proposed Resolution and Amendment
As Amended
April 11, 2016
RESOLUTION NO. 13412
A RESOLUTION APPROVING AN AMENDMENT TO AN
EMPLOYMENT AGREEMENT BETWEEN PUEBLO, A
MUNICIPAL CORPORATION AND CBD BIOSCIENCES, LLC, A
COLORADO LIMITED LIABILITY COMPANY 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 City Council finds and determines that good cause exists for the extension of the
“closing” date of the economic incentive transaction with CBD Biosciences, LLC, a Colorado
limited liability company (“Company”). The Amendment to the Employment Agreement, a copy
of which is attached hereto and incorporated herein by this reference, 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 said Amendment 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 the 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 which are
necessary or desirable to effectuate the transactions described therein.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: April 11, 2016
BY: Ray Aguilera