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09091
ORDINANCE NO. 9091 AN ORDINANCE APPROVING A CONVEYANCE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION, RELATING TO PROPERTY LOCATED IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City Council finds and determines that the conveyance of 442 Keeler Parkway, Pueblo, CO 81001, located within the Pueblo Memorial Airport Industrial Park (the “Property”) to the Pueblo Development Foundation, a Colorado nonprofit corporation (“PDF”) is for a public purpose and in furtherance of a municipal function and will retain primary jobs located in Pueblo County. SECTION 2. The conveyance Agreement, dated February 13, 2017 between the City and PDF, 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 Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The President of the City Council is further authorized to execute and deliver a Special Warranty Deed and any and all other related documents pertaining to the transfer of the Property from the City to PDF. SECTION 4. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Ordinance and the attached Agreement which are necessary or desirable to implement the transactions described therein. SECTION 5. This Ordinance shall become effective immediately upon final passage. INTRODUCED: January 23, 2017 BY: Ed Brown PASSED AND APPROVED: February 13, 2017 City Clerk’s Office Item # R-4 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: January 23, 2017 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: AN ORDINANCE APPROVING A CONVEYANCE AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND THE PUEBLO DEVELOPMENT FOUNDATION, A COLORADO NONPROFIT CORPORATION, RELATING TO PROPERTY LOCATED IN THE PUEBLO MEMORIAL AIRPORT INDUSTRIAL PARK SUMMARY: Attached is an Ordinance approving and authorizing the President of City Council to sign a conveyance Agreement for the transfer of 442 Keeler Parkway, Pueblo, CO 81001 (the “Property”) from the City to the Pueblo Development Foundation (“PDF”). PREVIOUS COUNCIL ACTION: On February 24, 2003, by Resolution No. 9796, City Council approved and consented to a lease of the Property by PDF to Minimart, Inc., a Wyoming corporation, dba Loaf ‘n Jug (“Company”). The Company subsequently exercised its option to extend the lease of the Property. BACKGROUND: The Company desires to renew its longstanding lease agreement for the Property. PDF has historically managed the lease of the Property and even though the ownership of the Property is currently held entirely by the City, the City desires to continue PDF’s management of the lease with the Company. FINANCIAL IMPLICATIONS: All rent and other payments received by PDF from the Company under the lease shall be paid to the City less five percent (5%) to be retained by PDF as reimbursement to PDF for its expenses in managing the Property. PDF’s obligations under the conveyance Agreement are to be secured by a first deed of trust in favor of the City to the Property. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved the Company may explore re-locating its office complex to a new location outside of Pueblo County. RECOMMENDATION: Approve the Ordinance. Attachments: Proposed Ordinance; proposed conveyance Agreement; proposed Special Warranty Deed; and proposed Deed of Trust AGREEMENT THIS AGREEMENT entered into as of the 1 day of Fi b t-u o.c%- , 2017 by and between the City of Pueblo, a Municipal Corporation ("City"), and Pueblo Development Foundation, a Colorado Non-Profit Corporation ("PDF"), WITNESSETH: WHEREAS, the City owns Lots 31 and 32, Pueblo Memorial Airport Industrial Park Subdivision located at 442 Keeler Parkway in Pueblo County Colorado. The land is improved with a commercial office building consisting of approximately 15,500 square feet and a storage building consisting of approximately 6,000 square feet all on approximately 1.97 acres of land. The land and improvements are collectively referred to herein as the "Property"; and WHEREAS, MINI MART, Inc. a Wyoming Corporation, doing business locally as Loaf N' Jug, ("Company") has leased the property for many years originally as part of an economic development project and thereafter on a continual basis as its headquarters for its multi-state convenience store operations; and WHEREAS, Company desires to renew its long standing lease agreement for the Property. Until recent years, ownership of the Property was bifurcated between the City (Land) and PDF (Improvements) but the ownership interests have merged and the City is the owner of the Property; and WHEREAS, PDF has historically managed the lease of the Property and the Lessor/Lessee relationship with the Company. Even though the ownership is now held entirely by the City, City desires to continue to have PDF manage the lease transaction with Company; and WHEREAS, City is willing to convey title to the property to PDF upon the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and conditions set forth herein, City and PDF agree as follows: 1. City will execute and deliver to PDF a Quit Claim Deed or, in the City's discretion, a Special Warranty Deed, conveying title to the property to PDF subject to the execution and delivery by PDF of a new lease with the Company in form and content acceptable to the City Attorney. 2. All rent and other payments received by PDF under the Lease shall be held in trust by PDF for the benefit of the City and, immediately after receipt thereof by PDF, PDF shall deliver and pay the rent to the City less five percent (5%) thereof to be retained by PDF as reimbursement to PDF for its expenses incurred in participating in this transaction and as Lessor under the lease with Company. 3. PDF shall not sell, encumber, or otherwise transfer the Property, except as is provided and set forth in the lease with the Company. Upon the expiration or sooner termination of the lease in accordance with its terms, PDF shall convey the property back to the City unless the Parties mutually agree to a continuation of ownership by PDF to facilitate further economic development projects. 4. PDF shall perform all covenants and conditions on the part of the Lessor to be performed under the lease and shall enforce all covenants and conditions on the part of the Lessee to be performed under the lease. PDF shall timely give written notice to the City of any of Lessee's defaults under the lease. PDF's obligation under this Agreement shall be secured by a first Deed of Trust on the property and PDF shall execute and deliver to the City its Deed of Trust in a form and content approved by the City Attorney. 5. If PDF defaults in the performance in any covenant or provision of this Agreement and/or of the lease, PDF shall within ten (10) days after written demand is given to PDF by the City convey title to the Property to City by Special Warranty Deed free of liens and encumbrances, except those liens and encumbrances existing at the time PDF acquired title to the Property, the lease, and PDF's Deed of Trust securing the performance of this Agreement, and, further, shall assign the lease to the City. The provisions of this paragraph may be specifically enforced. 6. If any provision of this Agreement is declared by a Court of competent jurisdiction to be invalid or unenforceable, such determination shall not affect the other provisions of this Agreement which shall remain in full force and effect. 7. The provisions of this Agreement are, and will be, for the benefit of City and PDF only, and not for the benefit of any third party and, accordingly, no third party shall have any right or remedy hereunder or the right to enforce any provision of this Agreement. 8. This Agreement shall be binding upon and inure to the benefit of the City and PDF and their respective successors and assigns, provided that PDF may not assign this Agreement or any of its rights hereunder without the prior written consent of City. 9. The covenants and agreements set forth in this Agreement are covenants running with the Property and shall survive the execution, delivery, and recordation of the Deed to PDF and shall not merge nor be deemed to have merged by or into the Deed of Conveyance to PDF. Executed at Pueblo, Colorado, the day and year first above written. PUEBLO - - `ORATION--- PUEBLO DEVELOPMENT FOUNDATION Ili IP ea, � By Pre en of the City Council Pr-sident / Attest: �'—t."1: wok Attest: City rk e retary Approved as to form: City Attorney Reception 2068957 04/28/2017 03:34:29 PM SPECIAL WARRANTY DEED THIS DEED, made this 13thday of February , 2017 by and between PUEBLO, a Municipal Corporation, Grantor, of the County of Pueblo and State of Colorado for and in consideration of the sum of TEN DOLLARS ($10.00) in hand paid by the PUEBLO Atig, DEVELOPMENT FOUNDATION, a Colorado Non-Profit Corporation Grant hereby sells and conveys to, Grantee, whose address is 301 N. Main St., Suite 200., Pueblo, CO 81003, the following real property situate in the County of Pueblo, State of Colorado, to-wit: Lots 31 + 32 Pueblo Memorial Airport Industrial Park Subdivision, County of Pueblo, State of Colorado more commonly known by street and number as: 442 Keeler Pkwy., Pueblo, CO 81001. also known as Pueblo County Assessor Parcel No. 330021041 a NI TOGETHER with all and singular the hereditaments and appurtenances thereto, belonging, or in Ali p[ any otherwise appertaining, and the reversion and reversions, remainder and remainders, rents, KO issues and profits thereof, and all of the estate, right, title, interest, claim, and demand o `^'G whatsoever of the Grantor, either in law or in equity, of, in, and to the above bargained premises a ,,ne tit with the hereditaments and appurtenances. Mm F TO HAVE AND TO HOLD the said premises above bargained and described with the N~l'Ar appurtenances, unto the Grantee, its successors and assigns forever. Grantor for itself and its 0,V successors and/or assigns do covenant and agree that it shall and will warrant and forever mmc:•-r- vt defend the above bargained premises in the quiet and peaceful possession of the Grantee, its :`,193::"1;-, t- successors and assigns, against all and every person or persons claiming the whole or any part NmE- W thereof, by, through or under the Grantor. The singular number shall include the plural and the m - plural the singular and the use of any gender shall be applicable to all genders. Said warranty ow iu - a is subject to rights-of-way, easements, covenants, plats, agreements and other restrictions of oN,' a record as of the date of this Deed and any other exceptions or exclusions or rights of third 84,-,..le tg parties not shown by the public records of which Grantee has actual knowledge, and subject tonantcItil s,inclusions of the property within any special taxing district. co v d U3 NaAM i.- IN WITNESS WHEREOF, the Grantor has executed this Deed on the date set forth above. 111 CC PUEBLO, A MU (t1C1P• RPORATION %a ,-- 4 ' i ,.,.‘a v\ _ A -wroikr !,,,s,,j ' , Step - `1// ` t` President of the City Council , 4::,.... ...1.:nw r Attest: o rk Aaa.s.r4 City le STATE OF COLORADO ) ) ss COUNTY OF PUEBLO . ) Subscribed and sworn to before me this 1 3+4h day of Fc..bru.ck...cL 2017 by Stephen G. Nawrocki, President of the Pueblo City Council and attested by the City Clerk. Witness my hand and official seal. My commission expires: 0 Di Iia DCS 1 BRENDA ARMIJO 1C 'LCA �J 'U '`� NOTARY PUBLIC Notary Public STATE OF COLORADO NOTARY ID 20124008702 MY COMMISSION EXPIRES 0211412020 2064149 WD 03/09/2017 03:34:29 PM Page: 2 of 2 R 18.00 D0.00 T 18.00 Gilbert Ortiz Clerk/Recorder, Pueblo County Co 1111111c1 11010111,1411:krEn11114111011IM'i'A 14, 11 111 2068957 CORR D 04/28/2017 02:17:13 PM Page: 2 of 2 -R 18.00 D 0.00 T 18.00 Gilbert Ortiz Clerk/Recorder. Pueblo County; Co lilt k1rAtI141:1111I4' 'LIN'h01111014i�� a"<«'�� �I�«li���h 11 III 2064149 WD 03/09/2017 03:34:29 PM RE: Ordinance 9091 Pa e: 1 of 2 R 18. 0.000 Gilbert Ortiz Clerk/Recorder00D 0: Pueblo 11 15County Co itII 1lr a'!4'+,1w,611‘l hafltiM 4L,11k'1I1g,10:Ili 1%1114, 111111 SPECIAL WARRANTY DEED THIS DEED, made this 13thday of February , 2017 by and between PUEBLO, a Municipal Corporation, Grantor, of the County of Pueblo and State of Colorado for and in consideration of the sum of TEN DOLLARS ($10.00) in hand paid by the PUEBLO DEVELOPMENT FOUNDATION, a Colorado Non-Profit Corporation Grantor, hereby sells and conveys to, Grantee, whose address is 301 N. Main St., Suite 200., Pueblo, CO 81003, the following real property situate in the County of Pueblo, State of Colorado, to-wit: Lots 31 + 32 Pueblo Memorial Airport Industrial Park Subdivision, County of Pueblo, State of Colorado more commonly known by street and number as: 442 Keeler Pkwy., Pueblo, CO 81001. also known as Pueblo County Assessor Parcel No. 330021041 TOGETHER with all and singular the hereditaments and appurtenances thereto, belonging, or in any otherwise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all of the estate, right, title, interest, claim, and demand whatsoever of the Grantor, either in law or in equity, of, in, and to the above bargained premises with the hereditaments and appurtenances. TO HAVE AND TO HOLD the said premises above bargained and described with the appurtenances, unto the Grantee, its successors and assigns forever. Grantor for itself and its successors and/or assigns do covenant and agree that it shall and will warrant and forever defend the above bargained premises in the quiet and peaceful possession of the Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor. The singular number shall include the plural and the plural the singular and the use of any gender shall be applicable to all genders. Said warranty is subject to rights-of-way, easements, covenants, plats, agreements and other restrictions of record as of the date of this Deed and any other exceptions or exclusions or rights of third parties not shown by the public records of which Grantee has actual knowledge, and subject to the inclusions of the property within any special taxing district. IN WITNESS WHEREOF, the Grantor has executed this Deed on the date set forth above. PUEBLO, A MU - tsRPORATION ALO' O �4a � ?j O4 It' i hk // /i„ V� \ p Step •-♦moo• `• President of the City Council � • Ir.AWNING raciiiiamaimm Attest: co,��'p�.��s� City Clerk STATE OF COLORADO ) ) ss COUNTY OF PUEBLO • ) Subscribed and sworn to before me this 134-h day of P rod "L l , 2017 by Stephen G. Nawrocki, President of the Pueblo City Council and attested by the City Clerk. Witness my hand and official seal. My commission expires: :; ILA \ DC` BRENDA ARMIJO U IL i in./AA/LI NOTARY PUBLIC Notary Public STATE OF COLORADO NOTARY ID 20124008702 MY COMMISSION EXPIRES 02114/2020 2064149 WD 03/09/2017 03:34:29 PM Page: 2 of 2 R 18.00 D 0.00 T 18.00 Gilbert Ortiz Clerk/Recorder. 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WII t SI II •s2utpaaooid ainsojoaloj qons lsoo Io ytnd n sn linoo Xq paxm. aq III II IfIrmurfe.AlliCWICAIICKINCIVA IIIA o0 rAluno0 oTgand 'Jap.Jooa2J/HJaTO etlJO lJagTTO 00'9Z 1 00'0 a 00'9Z a b Jo b :abed Wd 6Z:PE:£0 L10Z/60/£0 01 0S1b90Z 2159284 11/15/2019 09:49:41 AM .00 Original Note and Deed of Trust Returned to: Pater t 1 of Ortiz1 Clerk/Recorder,00 0 Pu0 Pueblo o�1 County, un t Y co`I ` 4 WHEN RECORDED RETURN TO:City Law ,III MliIMI i' l�klIM'LIKIIIN�ry'�■��li:11�il Y.i11i1h 11111 Department, I City Hall Place,3rd Floor,Pueblo, CO 81003 Prepared/Received by:City Law Department REQUEST FOR FULL © /PARTIAL El RELEASE OF DEED OF TRUST AND RELEASE BY HOLDER OF THE EVIDENCE OF DEBT WITH PRODUCTION OF EVIDENCE OF DEBT PURSUANT TO§38-39-102(1)(a),COLORADO REVISED STATUTES November 8,2019 Date .Pueblo Development Foundation Original Grantor(Borrower) 301 N. Main Street, Pueblo, CO 81003 Current Address of Original Grantor, Assuming Party,or Current Owner 0 Check here if current address is unknown City of Pueblo, Colorado,a Colorado municipal corporation Original Beneficiary(Lender) February 1,2017 Date of Deed of Trust Date of Recording and/or Re-Recording of Deed March 9,2017 of Trust Reception No.: 2064150 Recording Information County Rcpt.No.and/or Film No.and/or Book/Page No.and/or Torrens Reg.No. TO THE PUBLIC TRUSTEE OF Pueblo COUNTY(The County of the Public Trustee who is the appropriate grantee to whom the above Deed of Trust should grant an interest in the property described in the Deed of Trust.) PLEASE EXECUTE AND RECORD A RELEASE OF THE DEED OF TRUST DESCRIBED ABOVE. The indebtedness secured by the Deed of Trust has been fully or partially paid and/or the purpose of the Deed of Trust has been fully or partially satisfied in regard to the property encumbered by the Deed of Trust as described therein as to a full release or, in the event of a partial release, only that portion of the real property described as:(IF NO LEGAL DESCRIPTION IS LISTED THIS WILL BE DEEMED A FULL RELEASE) City of Pueblo, Colorado, One City Hall Place, 2nd Floor, Pueblo, CO 81003 Name and Address of Current Holder of the Evidence of Debt Secured by Deed of Trust(Lender) Nicholas A. Gradisar,Mayor, One City Hall Place, 2nd Floor, Pueblo, CO 81003 Name,Title and Address of Officer,Agent,or Attorney of Current Holder t j�r .�4ita rate.'of Signature Signature State of Colorado Ellene Tracey Sample County of Pueblo NOTARY PUBLIC The foregoing Request for Release was acknowledged before me STATE OF COLORADO on November 8,2019 (date)by* NOTARY ID#20074038010 Nicholas A.Gradisar, Mayor of the City of Pueblo,Colorado � MY COMMISSION EXPIRES 10110/2023 /Q//O /1.3 Date Commission Expires C�_-e�.�v"4 .fia,la,, 4 *1f applicable,insert title of officer and name of current holder Notary Public Witness hand and official seal RELEASE OF DEED OF TRUST WHEREAS,the Grantor(s)named above,by Deed of Trust,granted certain real property described in the Deed of Trust to the Public Trustee of the County referenced above,in the State of Colorado,to be held in trust to secure the payment of the indebtedness referred to therein;and WHEREAS,the indebtedness secured by the Deed of Trust has been fully or partially paid and/or the purpose of the Deed of Trust has been fully or partially satisfied according to the written request of the current holder of the evidence of debt; NOW THEREFORE,in consideration of the premises and the payment of the statutory sum,receipt of which is hereby acknowledged, 1,as the Public Trustee in the County named above,do hereby fully and absolutely rel-. -,'canc; :nd orev•r dischar:e1 e Deed of Trust or that portion of the real property described above in the Dgel 1 .tpgether w'•'- : .riv. -:: id .:.urtdna#, ereto b Ion ing. v ;� i���� '• . �� �,; Public ► stee / Da • a :) ►�: Volet 7 .4 a .-pt,`* 0 Deputy Public Trustee Date * G6d" 4, (If applicable,Name and Address of Person Creating New Legal Descri•pRDn . egalired by§38-35-106.5, Colorado Revised Statutes.) ©2009 CPTA. All Rights reserved. Rev.09/09