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Home My WebLink About09236 ORDINANCE NO. 9236 AN ORDINANCE APPROVING AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE AMENDMENT NO. 2 TO THE COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND THE PUEBLO URBAN RENEWAL AUTHORITY RELATING TO THE ST. CHARLES INDUSTRIAL PARK URBAN RENEWAL AREA BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Amendment No. 2 to the Cooperation Agreement between the City of Pueblo, a Colorado municipal corporation (“City”) and the Pueblo Urban Renewal Authority, a body corporate and politic of the State of Colorado (“PURA”) relating to the St. Charles Industrial Park Urban Renewal Area, dated December 11, 2017, attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The President of the City Council is hereby authorized and directed to execute said Amendment No. 2 for and on behalf of the City and the acting City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The officers and staff of the City are authorized and directed to perform any and all acts consistent with the intent of this Ordinance and the attached Amendment No. 2, to implement the policies and procedures described therein. SECTION 4. This Ordinance shall become effective immediately upon final passage. INTRODUCED November 27, 2017 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING CITY CLERK PASSED AND APPROVED: February 26, 2018 City Clerk’s Office Item # R-5 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 27, 2017 TO: President Stephen G. Nawrocki and Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE AMENDMENT NO. 2 TO THE COOPERATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND THE PUEBLO URBAN RENEWAL AUTHORITY RELATING TO THE ST. CHARLES INDUSTRIAL PARK URBAN RENEWAL AREA SUMMARY: The attached Ordinance approves Amendment No. 2 to the Cooperation Agreement between the Pueblo Urban Renewal Authority (“PURA”) and the City of Pueblo. The second amendment to the Cooperation Agreement authorizes the payment of an additional $742,732.00 to the Board of Waterworks of Pueblo, Colorado (“Waterworks”) to reimburse Waterworks for the additional costs of eligible public improvements incurred in providing water service to the Vestas Towers America, Inc. (“Vestas”) manufacturing plant. PREVIOUS COUNCIL ACTION: The Urban Renewal Plan for the St. Charles Industrial Park Urban Renewal Project (“Plan”) was approved by City Council on December 21, 2008. PURA and the City entered into a Cooperation Agreement on June 8, 2009 regarding the financing of certain eligible public improvements. Amendment No. 1 to the Cooperation Agreement was entered into by PURA and the City on October 23, 2010. The purpose of the first amendment to the Cooperation Agreement was to, among other things, provide for reimbursement to Waterworks for eligible public improvements made by Waterworks in order to provide water service to Vestas. BACKGROUND: Waterworks completed its eligible public improvements for the Vestas project on January 25, 2011. However, the costs incurred by Waterworks exceeded the amount authorized by the Cooperation Agreement and Amendment No. 1 to the Cooperation Agreement. FINANCIAL IMPLICATIONS: The attached Ordinance increases the amount to be paid to Waterworks for eligible costs from $2,704,000 to $3,446,732. The additional $742,732 will not be paid by the City but will be paid out of tax increment revenue from the Vestas project. BOARD/COMMISSION RECOMMENDATION: The governing board of Waterworks recommends approval of this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, Waterworks will not be reimbursed for the full cost of providing water service to Vestas. RECOMMENDATION: Approve the Ordinance. Attachments: Proposed Ordinance Proposed Amendment No. 2 to the Cooperation Agreement AMENDMENT NO.2 COOPERATION AGREEMENT Saint Charles Industrial Park Urban Renewal Project 1.0 PARTIES. The parties to this amendment("Amendment No.2")are the CITY OF PUEBLO, a Colorado municipal corporation (the "City") and the PUEBLO URBAN RENEWAL AUTHORITY,a body corporate and politic of the State of Colorado(the"Authority").The City and the Authority are sometimes referred to herein collectively as the "Parties" and individually as a "Part y, 2.0 • RECITALS. The recitals to this Agreement are incorporated herein by this reference as though fully set forth in the body of this Agreement. 2.1 The Urban Renewal Plan. The Authority is carrying out the Urban Renewal Plan for the Saint Charles Industrial Park Urban Renewal Project(the"Plan"),which was approved by the City Council of the City on December 21, 2008. 2.2. Cooperation Agreement;Definitions. In furtherance of the Plan,the Parties entered into a Cooperation Agreement dated as of June 8,2009,as amended by Amendment No.1 dated as of August 23, 2010(collectively, the"Cooperation Agreement") for the purpose of financing certain Eligible Public Improvements defined therein.Unless otherwise stated herein all definitions in this Amendment No. 2 shall have the same meaning as in the Cooperation Agreement, as amended. 2.3. Purpose of Amendment. Pursuant to information provided by the Board of Water Works of Pueblo, Colorado (defined in the Cooperation Agreement and herein as the "Water Works")the Water Works has incurred Eligible Costs,in excess of the limitation set forth in Section 6.01 of the Cooperation Agreement,for Eligible Public Improvements completed January 25,2011. The Parties desire to amend the Cooperation Agreement to pay such additional Eligible Costs in the manner set forth in. Section 4.0 of this Amendment No. 2. 3.0 TERMS AND CONDITIONS. In consideration of the mutual covenants and promises of the Parties contained herein, and other valuable consideration, the receipt and adequacy of which arc hereby acknowledged,the Parties agree as set forth in this Amendment No. 2. 4.0 INCREASE PAYMENT OF SUBORDINATE OBLIGATION TO WATER WORKS. Section 6.01b(2)of the Cooperation Agreement is modified to raise the amount payable to the Water Works for Eligible Costs incurred as part of the Subordinate Obligations from $2,704,000 to $3,446,732. Water Works has submitted documentation of such increase in Eligible Costs and received written approval of said documentation by the Authority. 4.0 EFFECT OF AMENDMENT. Except as modified by this Amendment No. 2, the Cooperation Agreement will remain in full force and effect and inure to the benefit of and binding upon the Parties. [Signature page follows] IN WITNESS WHEREOF,the City and Authority have caused this Amendment No. 2 to be executed as of /- e- Rut iZ.-•/ 24. ,20 PUEBLO,A MUNICIPAL CORPORATION 441 r ATTEST!----iatiLn d a LA-vvwf By: Hch-n ci City Clerk Pr dent the City Council THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO 41111110, ATTEST: Aid By: Secre r4 , Chairman of the ommissioners 2