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Home My WebLink About13939 City Clerk’s Office Item # M-4 Background Paper for Proposed Resolution COUNCIL MEETING DATE: April 9, 2018 TO: Christopher A. Nicoll and Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO CERTAIN RESTRICTIVE COVENANTS APPLICABLE TO 32251 UNITED AVENUE, PUEBLO, COLORADO 81001 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 the restrictive covenants which are applicable to 32251 United Avenue, Pueblo, Colorado 81001 in the Memorial Airport Industrial Park (“Subject Property”). PREVIOUS COUNCIL ACTION: On December 17, 1985, the City sold the Subject Property to Glenn C. Enderud and Lois M. Enderud. Mr. and Mrs. Enderud subsequently conveyed the Subject Property to Larry C. Enderud. Big R Properties, LLC (“Big R’) is interested in purchasing the Subject Property from the Enderud family. The Subject Property is located across the street from 100 Big R Street, Pueblo, Colorado 81001. Big R purchased 1 Big R Street from the City on February 1, 2018. BACKGROUND: Big R desires to purchase the Subject Property in order to expand its business facilities. In particular, Big R wants to use the Subject Property to maintain and make minor repairs to the Big R fleet of tractors/trailers, as well as other inventory and equipment. Big R tractors/trailers can be parked on the property located at 100 Big R Street, but the restrictive covenants for the Subject Property prohibit the parking of trucks and tractors except on a temporary basis. The Subject Property also has restrictive covenants regarding height, setbacks and landscaping, and Big R wishes to amend these to conform generally with those applicable to 100 Big R Street. Big R would like the land use and other requirements for the Subject Property to be the same as for 1 Big R Street and has requested that the current restrictive covenants relating to the Subject Property, including those governing the parking of tractor trailers, be amended. FINANCIAL IMPLICATIONS: Passage of this Resolution will not result in a direct financial impact to the City. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If this Resolution is not approved, Big R may decide not to purchase the Subject Property. RECOMMENDATION: Approve the Resolution. Attachments: Proposed Resolution and proposed Amendment to Restrictive Covenants RESOLUTION NO. 13939 A RESOLUTION APPROVING AN AMENDMENT TO CERTAIN RESTRICTIVE COVENANTS APPLICABLE TO 32251 UNITED AVENUE, PUEBLO, COLORADO 81001 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 Restrictive Covenants dated April 9, 2018, 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 Acting City Clerk is directed to affix the seal of the City thereto; attest same and record same in the real property records of the County Clerk and Recorder of Pueblo County, Colorado. SECTION 2. The officers and staff of the City are authorized and directed to perform any and all acts consistent with this Resolution and the attached Amendment to Restrictive Covenants, which are necessary or desirable to implement the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED: April 9, 2018 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: ACTING CITY CLERK re; Resolution 13939 Reception 2102120 04/12/2018 03:35:44 PM AMENDMENT TO RESTRICTIVE COVENANTS This Amendment to Restrictive Covenants (the "Amendment") is made effective as of April 9, 2018,and amends to the extent provided herein certain covenants set forth in that certain Warranty Deed (the "Original Deed") made the 17th day of December, 1985 by and between the City of Pueblo, a Municipal Corporation (the "City") and Glenn C. Enderud and Lois M. Enderud,joint tenants (referred to in the Original Deed as the "Company") and recorded in the records of the Pueblo County Clerk and Recorder on February 7, 1986 at Reception No. 793559, Book 2277, Page 713. RECITALS WHEREAS, pursuant to the Original Deed, the City conveyed the property commonly known as 32251 United Avenue, Pueblo, CO(the "Subject Property")to the Company; and WHEREAS, the Original Deed was transferred from the Company to Larry C. Emderud (sic) pursuant to a warranty deed recorded August 3, 2012 (the "2012 Deed"); and WHEREAS,the 2012 Deed inadvertently referred to the transferee as"Larry C. Emderud", instead of"Larry C. Enderud"; and WHEREAS, a corrective deed to fix the above typographical error has been submitted to the Pueblo County Clerk and Recorder for recording; and WHEREAS, Big R Properties, LLC ("Big R Properties"), a Colorado limited liability company, wishes to purchase the Subject Property, which Subject Property is adjacent to other property purchased by Big R Properties in 2018, provided that the covenants set forth in the Original Deed are amended as set forth below. NOW THEREFORE,the City hereby agrees to amend the Original Deed as follows. 1. Section 2 of the Original Deed is hereby amended in its entirety to read as follows: "The height of any structures, objects of natural growth and other obstructions on the Property shall be limited to no more than 4,700 feet above the mean sea level, unless written approval for a greater height shall be obtained from the Federal Aviation Administration." 2. Section 4 of the Original Deed is hereby amended as follows: (a) Section 4(a) is hereby amended in its entirety to read as follows: "The Property may be used only for offices, fabrication, assembly, warehousing, maintenance, repairs and storage of tractors and trailers and other goods and equipment. The Property shall not be used for smelting or plating operations, or for the storage or processing of putrescible materials. Gasoline or diesel fuel may be used and stored on the 1 2102120 04/12/2018 03:35:44 PM Page: 2 of 2 R 18.00 D 0.00 T 18.00 - - Gilbert Ortiz Clerk/Recorder.. Pueblo County. Co EH kiI'd Etli rl110!1'L0:F,01,'rk.6k F',1!.F'11i 1,i101.F't'rili",ir 11111 Property in connection with business operations conducted on the Property, but not for resale." (b) Section 4(b) is hereby deleted in its entirety. (c) Section 4(c) is hereby amended in its entirety to read as follows: "The property shall not be subdivided and no building or structure over 70 feet in height shall be installed or constructed on the Property unless written approval for a greater height shall be obtained from the Federal Aviation Administration." (d) Section 4(d) is hereby deleted in its entirety. 3. Except as otherwise provided in this Amendment to Restrictive Covenants,the covenants set forth in the Original Deed shall remain in effect without modification. Executed effective as of the date and year first set forth above. CITY OF PUEBLO, a M -' ;.al corporation o 4000.10- ATTEST` , , ; �; By: /i } P - sent of City Council li Ad-inC) City Cler COUNTY OF PUEBLO ) ) ss. STATE OF COLORADO ) The foregoing instrument was acknowledged before me in Pueblo County, Colorado,this t� day of AJlc) 2018, by Ohm fibpj- Abe a/( , as the President of the City Council of the City of Pueblo, Colorado. WITNESS my hand and official seal. Ake. ke '1' ' 'QT TA [ NOTARYPU o My commission expires: 9 0(_,,,,,,,,,, STATE OF CO$ ritY 4NQTpRYID 8 1 2020 Notary Public 2