HomeMy WebLinkAbout13990RESOLUTION NO. 13890
A RESOLUTION IN SUPPORT OF THE PUEBLO COUNTY
YES PUEBLO PROJECT AND AUTHORIZING CITY STAFF
TO ASSIST WITH IMPLEMENTATION
WHEREAS, in November 2016 Pueblo County ("County") voters passed Ballot
Question 1A, which allows the County to collect, retain and spend all revenue from all
sources notwithstanding the limitations of Article X, Section 20 of the Colorado
Constitution ("TABOR") or other law and utilize revenues from expiring Tax Incentive
Agreements.("TIA") in the amount of approximately $66 million to fund an initial list of 20
specific community improvement projects, and a list of projects as modified or
supplemented from time to time, now formally known as the Community Improvement
Program ("CIP"); and
WHEREAS, Pueblo County has conducted a preliminary analysis surrounding a
proposed financing utilizing Certificates of Participation and the TIA revenues,
determining that financing is possible to support funding of the 20 specific community
improvement projects in the CIP in 2018; and
WHEREAS, County funds were advanced for design studies for numerous projects
around the County, including several within the Pueblo City limits; and
WHEREAS, the County has identified Pueblo Conservancy District property
southeast of the existing Runyon Field Sports complex ("Runyon") and northeast of Lake
Runyon as an ideal location for the expansion of Runyon to meet the commitment for a
downtown youth sports complex; and
WHEREAS, the County has already applied for and received a successful Great
Outdoors Colorado ("GOCO") grant for assisting in funding the Runyon expansion, in the
amount of $300,000; and
WHEREAS, the County has been collaborating with the City and the Division of
Parks and Wildlife to develop a master plan for the future of Lake Runyon and adjacent
properties; and
WHEREAS, the County has been in discussions with the Colorado Department of
Transportation ("CDOT") regarding the future disposition of CDOT properties adjacent to
Runyon when the llex I-25 realignment is completed to support the expansion of the youth
sports complex and associated development; and
WHEREAS, as contemplated under the CIP, Pueblo County desires to implement
multiple projects in Pueblo's downtown as part of a Youth, Entertainment and Sports
district ("YES Pueblo") including a youth sports complex, Historic Arkansas Riverwalk of
Pueblo ("HARP") expansion, and Main Street pedestrian improvements; and
WHEREAS, the County has proposed HARP expansion northwest of the existing
Riverwalk by reconfiguring Upper Lake Elizabeth and Pueblo County plans to acquire
Upper Lake Elizabeth from the Pueblo Conservancy District, and upon redesign of Upper
Lake Elizabeth, the new Riverwalk channel will have less surface area while doubling in
depth, which should conserve water from evaporative loss benefiting the environment,
the citizens of Pueblo and the Pueblo Board of Water Works; and
WHEREAS, as part of YES Pueblo, the County also desires to construct six
baseball fields as an expansion of Runyon; and
WHEREAS, Pueblo County has been presented with an opportunity to assist with
relocating to Pueblo a short season, single-A, major league-affiliated minor league
baseball team and Pueblo County desires to construct a multi-use stadium for said minor
league baseball team on the property currently occupied by the former Associated
Grocer's Warehouse and Upper Lake Elizabeth; and
WHEREAS, the owner of the short season, single-A, major league-affiliated minor
league baseball team will commit to no less than a 20-year term beginning in 2020 to
relocate the team to the new multi-use stadium; and
WHEREAS, the multi-use stadium is planned to also serve local high school teams'
home games, managed as an extension the Runyon for those games, and some of CSU-
Pueblo's home games through an agreement with the County and/or the minor league
baseball team; and
WHEREAS, as a Pueblo County-owned facility, the multi-use stadium will be made
available by the County for public events held by Pueblo County, the City of Pueblo,
Pueblo Greater Chamber of Commerce, Pueblo Urban Renewal Authority (PURA) and
HARP; and
WHEREAS, the County intends to designate and make available to the Pueblo
City County Library District certain space within the YES Pueblo project to be used as a
Pueblo baseball museum and archives with such facility to be administered by the Library
District, and the County will also permit and support the Library District's installation of a
digital library related kiosk or device made available for public use via an agreement; and
WHEREAS, the County will allow the CSU-Pueblo baseball team to play a portion
of their home games at the multi-use stadium; and the County intends to affix a CSU-
Pueblo logo on the exterior of the multi-use stadium, allow access to the locker rooms
during their college games, and provide a space for a recruitment office, apparel sales or
classroom in the YES Pueblo Project Area so long as the CSU-Pueblo baseball team
plays a weekend series or tournament at the multi-use stadium; and
WHEREAS, if space allows, Pueblo County intends to construct the multi-use
stadium in such a manner to accommodate soccer and lacrosse matches, and then the
County will also make the stadium available for high school and college soccer and
lacrosse matches; and
WHEREAS, both School Districts D-60 and D-70 will be allowed use of the new
stadium for functions and activities, including graduations and home baseball games; and
WHEREAS, the location of the new multi-use stadium is situated to complement
the adjacent future proposed development of the historically designated former Black Hills
5&6 power plant as contemplated by renowned developer Dana Crawford; and
WHEREAS, the minor league baseball owner also is expected to commit to other
job creation developments beyond minor league baseball, including constructing at his
own expense a minimum of three downtown hotels, as well as operating competitive
youth travel baseball tournaments utilizing new fields at expanded Runyon for a segment
of the year, where the youth baseball tournaments are expected to draw five-hundred
children and their families weekly, primarily travelling from out of Pueblo, and the
tournament games will primarily be played during weekdays for fourteen weeks of the
year; and
WHEREAS, Pueblo County has proposed a financing plan for the multi-use
stadium, which does not use any TIA (1A) revenues; and
WHEREAS, Pueblo County has proposed a financing plan for the multi-use
stadium, which does not use any direct expenditures from the City of Pueblo; and
WHEREAS, Pueblo County has proposed a financing plan for the multi-use
stadium, which does not include the City of Pueblo or Pueblo Urban Renewal Authority
(PURA) assuming any debt, or any moral debt obligation; and
WHEREAS, Pueblo County has agreed to be responsible for securing and
repayment of all debt for the multi-use stadium; and ·
WHEREAS, Pueblo County has proposed a financing plan for the multi-use
stadium, with a tax increment financing (TIF) structure, which utilizes selected YES
Pueblo project development parcels generally identified within the areas highlighted in
pink on the three (3) page map attached as Appendix A, some of which include existing
parcels currently in PURA project areas, that are producing de minimis amounts of tax
revenues. Appendix A includes a potential PURA YES Pueblo Project area for reference
purposes only, and the final TIF area map to be negotiated between PURA and County
and subsequently approved by the City as required by C.R.S. 31-25-107, at a later date;
and
WHEREAS, Pueblo County requests that PURA, conditioned on permission from
existing selected financial obligation holders, and subject to subsequent approval by the
City as required by C.R.S. §31-25-107, to remove identified parcels on the final TIF area
map out of any existing urban renewal project areas and it is anticipated the identified
parcels on the final TIF area map will comprise a new PURA YES Project Area, subject
to subsequent approval by the City as required by C.R.S. §31-25-107; and
WHEREAS, the County has agreed to relinquish its full property tax and sales tax
increment in all parcels in the new PURA YES Project Area for twenty-five years for the
purpose of the YES Pueblo project and the County has requested that the City provide
full property tax increment, partial sales tax increment, and full City lodging tax increment
generated from all parcels in the new PURA YES Project Area for twenty-five years; and
WHEREAS, Pueblo County specifically requests that the City provide 81.081% of
the City's 3.7% sales tax increment (providing 3.0% of the 3.7% to the tax increment) and
100% of the City’s 4.3% lodgers tax increment generated from all parcels in the new
PURA YES Project Area for twenty-five years, however the City will not relinquish the .5%
sales tax increment currently dedicated for economic development or the .2% sales tax
increment currently dedicated for public safety in the new YES PURA project area; and
WHEREAS, the YES Pueblo project and the minor league baseball owner's
proposed developments will pay all the future sales and property tax increment revenues,
subject to approval by the various taxing entities affected, utilized for the construction of
the multi-use stadium which stadium revenues would not be realized if not for the
development of the multi-use stadium and proposed developments; and
WHEREAS, based upon anticipated development, the County's financial analyst
has projected up to $45,000,000 in TIF revenue may be generated over the twenty-five-
year period from the new PURA YES Project district; and
WHEREAS, the County expects that the land acquisition, soft costs, and
construction costs of the multi-use stadium to be less than $27,000,000; and
WHEREAS, the County has requested that the Pueblo Economic Development
Corporation ('PEDCO'), in its capacity as skilled economic development professionals,
will review and evaluate the financials of the minor league baseball owner to ensure his
capacity to secure financing to construct and operate his proposed hotels, develop the
travelling baseball tournament business, and continue to operate the minor league
baseball team; and
WHEREAS, the County anticipates imposing a 2.0% Public Improvement Fee
(PIF) to be overlaid on the PURA YES Project Area for the long-term operations and
maintenance of the multi-use stadium and other associated YES Pueblo project area
costs; and
WHEREAS, the City Council supports the YES Pueblo projects as described
above. NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
A. It is anticipated that PURA, subject to subsequent approval by the City as
required by C.R.S. §31-25-107, will negotiate with existing selected financial obligation
holders with the intent of removing parcels from existing urban renewal project areas, as
identified in Appendix A, for the purpose of creating a new YES Pueblo Project urban
renewal area and collecting a new property tax increment.
B. It is anticipated that PURA, after removing any parcels out of existing urban
renewal project areas and subject to subsequent approval by the City, will request that
the City establish a new YES Project Area, consisting of selected parcels generally
identified within the areas highlighted in pink on the three (3) page map attached as
Appendix A.
C. If the YES Project Area is established as a new urban renewal area, as long
as the County agrees to forego full tax increment for both property tax and sales tax in
the new PURA YES Project Area for twenty--five years, the City shall provide its full
property tax increment, 100% of the 4.3 % lodgers tax increment, and 81.081% of the
3.7% sales tax increment in the new PURA YES Project Area for the same duration to
support the financing of the proposed developments.
D. All tax increment revenues, minus any administrative charge incurred by
PURA, in the new PURA YES Project Area pursuant to the approved Urban Renewal
Plan shall be collected by PURA and dispersed in a· timely fashion after collection to the
County to reimburse financial obligations related directly to property acquisition, soft
costs, and construction of the new multi-use stadium.
E. Any TIF revenues PURA receives from the YES Project Area over and
above the cost of the County's financings for the purpose of property acquisition, soft
costs, and construction of the new multi-use stadium may be expended by PURA as
permitted by applicable law and subject to approval by the various taxing entities affected.
so long as the County's financial obligations related thereto are being or have been fully
repaid.
F. The City of Pueblo will not contribute any City general fund dollars to fund
the YES Pueblo projects.
G. The City of Pueblo has no obligation to incur any debt for the YES Pueblo
Project.
H. PURA has no obligation to incur any debt for the YES Pueblo Project.
However, PURA is responsible for collecting the identified tax increment revenues and
dispersing the same to the County, minus any administrative charge incurred by PURA,
for the purpose of covering the cost of the related financial obligations.
I. The City requests PURA to assist with any property acquisition necessary
for the development of the YES Pueblo Project, so long as the County commits to pay all
property acquisition costs.
J. The City, per the process as set forth in the HARP IGA, will request that the
HARP Authority negotiate a Development and Disposition Agreement with the County for
the purpose of selling Lot 6, Historic Arkansas Riverwalk of Pueblo Filing 1 to the County.
K. The City agrees to consider the sale or request PURA to sell, one of the
following two identified parcels to the County: 1) the former police annex parcel; or 2) the
collective parcels that comprised the former Pueblo City-County Health Department on
Main Street, at prices to be negotiated.
L. The City agrees to maintain the Main Street public improvements upon
completion and in a manner consistent with the City's policies and procedures.
M. The City agrees to consider the amendment of its IGA with CDOT, if
necessary, to allow CDOT's property possibly to be utilized for the YES Pueblo projects.
N. The City agrees to consider the relinquishment of any easements or rights
in the upper Lake Elizabeth area for the purpose of the County developing future
Riverwalk expansion or the multi-use stadium.
O. The City will support the imposition, and if so negotiated, collect and transfer,
for a reasonable administrative fee, to the County the 2.0% Public Improvement Fee (PIF)
to be overlaid on the PURA YES Project Area for the costs of the long-term operations
and maintenance of the multi-use stadium and other associated YES Pueblo Project Area
costs.
SECTION 2.
The officers and staff of the City are authorized and directed to perform any and all acts
consistent with the intent of this Resolution to effectuate the policies and procedures
described herein, including working in a collaborative process with the County, PURA,
HARP, Board of Water Works and Pueblo Conservancy District to ensure all work can be
conducted in an expeditious manner.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED June 11, 2018
BY: Dennis Flores
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
ACTING CITY CLERK
City Clerk’s Office Item # Q-2
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: June 11, 2018
TO: Christopher A. Nicoll and Members of City Council
VIA: Brenda Armijo, Acting City Clerk
FROM: Sam Azad, City Manager
SUBJECT: A RESOLUTION IN SUPPORT OF THE PUEBLO COUNTY YES PUEBLO
PROJECT AND AUTHORIZING THE CITY STAFF TO ASSIST WITH
IMPLEMENTATION
SUMMARY:
Attached is a Resolution supporting Pueblo County’s proposed Youth Entertainment and Sports
(YES) Project.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
Pueblo County has been presented with an opportunity to assist with relocation of a short season,
single-A, major league-affiliated minor league baseball team to Pueblo and the County desires to
construct a multi-use stadium for said minor league baseball team on the property currently
occupied by the former Associated Grocer’s warehouse and upper Lake Elizabeth area adjacent
to the HARP project.
FINANCIAL IMPLICATIONS:
Pueblo County has proposed a financing plan for the multi-use stadium, with a tax increment
financing (TIF) structure. In the attached Resolution, the City Council expresses support for the
following two portions of the County’s proposed financing plan (subject to subsequent approval
by the City Council as required by the State of Colorado’s Urban Renewal statutes):
1. For a period of twenty-five years, the City’s property tax increment revenue and
3% of the City’s 3.7% sales tax increment to be generated from all parcels in the
newly-created YES Project area.
2. For a period of twenty-five years, the City’s lodger’s tax increment, (currently
assessed at the rate of 4.3% of lodging revenues) to be generated from all parcels
in the newly-created YES Project area.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
The City has the option of not pledging its future sales tax TIF revenue and lodger’s tax TIF
revenue to support the County YES Project.
RECOMMENDATION:
None.
Attachments:
Proposed Resolution
0
' i ,.
, iii , __ .
1 _
, It.,
a
1
Iri .
., ..
, .
1, .. ,..,4 . ,,,7, 1 . 1..ii,
••• ,,,
.,. • . ,.?., ...
,;.,1
0 , . ,
. „
w . , ,_;.4.,
.. . i ,,.
1 .. „
I ._ ! . , . .
...
.. ,, ,,,...• . 1 ,.
. ,ia,
,:diii
.,,,_„.„ ,
.. . .
.... ..,,
..
,. .
. ..„.„ .
5 �'
7
C INN WairIBUNIN,Igiiirlin, ., la.
'
O
• s �
irt
" (t)
I a
ID
}
�y;
C
, \II.'
-. t.
L 3 , A T s ` �„
/I nn it
f .. AA
Q
S
.. ,,,,:,,.„.i.:411,,t,,,i4,.' ii-:. .,,,,k,.k 4 , (--,,', ..,,,,:lioil ot .,-:', .,, ' .._ ' r`"'",°,' . ' . m
/
f
,
A •F
7. „_ _s i I .,j
•
S
, .h./ \I\ 1-
'',N' NI, 44.1r.' , ::/"''*,,,,
' c r�
` if
' ♦ e n
T) Q
r"
'
• .
'Sit. ' 4''''' '
..; Ty "104.40°
1r
C I **A' "
'
j
4 0
co ,
I.
dr N' / ik , Ilik 1011* ' ., 1 I k, de • ' ' 4
RO vti
%
t , ,
� • ' ti ff
� k rKK
, „ i
NI
w , a
ill . ,A :•fr.,.4. . ..,
'�
a QC_ ' M .r�MMO , 00
.
.
'
,,,,,,, 4.;.,i ,•Allt- ' 4141111\lkilliN
.s
I'luli ASP' 7-- r . .. %.I •,
,
'410111‘‘I' -'
1 . 1;111...anatito).. , ., .-, ';,-t,,,40-46,ii 0,/• • o ...
6"
r t •r
- P . . , ,. , , #•4k. , .*0
y
,o'‘'. ' ' f • '',,?* i i, 40'.4.--.4:: ,
a
,+ ., ,
of M P i,:4,,4:,71:-.
. •¢• pr te i 5* , +
r Sly
an
• .
ti
lit.
-0" ' , 4.4 '*14. . ' V,
li , A",,,itil. i . \ -:
torkt,..it,
v4 x
cll
k.
i !{,
r c r � + •
. tt ,.'
: , 'A, 1n.
., s ,-,' ,..,.' likf,,- - . ,,
�� t i
ce..5 , ,„. ' . • 4 , : ''''''. ,",,,,.' ,,,..' '' ' ,, "iit#4,
•
,
ri
LL " '' `
i A
., JIM g *4 ill
'41141W ' It
y
o' / k a ' .•4 .a-
"..►.,..iw. I) ....,q, ,sMIP. ,„t ^*1 wM / _4', l'' ,;1
j
CV '' i S • 1 •715
' I ,
3A,. +., s. i� 1�� Y 3 i Y 1 NYS :6:1
ttt:::RRR" • AYP + ,.r ,
i %Sr4=
Ato
. tl :I oil , „ .
" ''.,,,41‘L,... 1 • ,
ti++ .....
44' / • A A�j fir.
is