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City Clerk’s Office Item # R-9
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: October 22, 2018
TO: President 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: AN ORDINANCE APPROVING A PROPERTY TAX INCREMENT REVENUE
AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE PUEBLO URBAN
RENEWAL AUTHORITY AND PUEBLO SCHOOL DISTRICT NO. 60 AND THE
PUEBLO CITY-COUNTY LIBRARY DISTRICT AND THE SOUTHEASTERN
COLORADO WATER CONSERVANCY DISTRICT AND THE LOWER
ARKANSAS VALLEY WATER CONSERVANCY DISTRICT AND PUEBLO
COUNTY, COLORADO, RELATING TO THE EVRAZ URBAN RENEWAL
PROJECT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO
EXECUTE SAID AGREEMENT
SUMMARY:
Attached is a proposed Ordinance approving a Property Tax Increment Revenue Agreement
between the Pueblo Urban Renewal Authority (“PURA”) and the six governmental entities
(including the City) which have taxing authority over the Evraz Urban Renewal Project.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
By a concurrent Ordinance, the Pueblo City Council will make certain legislative findings and
approve a new urban renewal plan for the Evraz project area. This Ordinance approves a
Property Tax Increment Revenue Agreement in which the six taxing governmental bodies of the
Evraz project area agree that 100% of the property tax increment revenues will be used to pay
eligible costs of the Evraz Urban Renewal Project, including the debt service associated with the
issuance of PURA’s bonds.
FINANCIAL IMPLICATIONS:
The City of Pueblo, along with the other five taxing governmental bodies, waive their right to
receive any property tax increment revenues until the bonds issued by PURA are paid off. After
PURA’s bonds have been paid in full and all related administrative expenses have been paid to
PURA, the City, along with the other five taxing governmental entities will begin receiving the tax
increment revenues from the Evraz project.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
City staff has collaborated with the staffs of Evraz, PURA and the five other taxing entities to
negotiate the terms and conditions of the attached agreement.
ALTERNATIVES:
If this Ordinance is not approved, the repayment of PURA’s bonds associated with the Evraz
Urban Renewal Project will be jeopardized.
RECOMMENDATION:
Approve the Ordinance.
Attachments: Proposed Ordinance, proposed Property Tax Increment Revenue
Agreement
ORDINANCE NO. 9365
AN ORDINANCE APPROVING A PROPERTY TAX INCREMENT
REVENUE AGREEMENT BETWEEN THE CITY OF PUEBLO AND
THE PUEBLO URBAN RENEWAL AUTHORITY AND PUEBLO
SCHOOL DISTRICT NO. 60 AND THE PUEBLO CITY-COUNTY
LIBRARY DISTRICT AND THE SOUTHEASTERN COLORADO
WATER CONSERVANCY DISTRICT AND THE LOWER
ARKANSAS VALLEY WATER CONSERVANCY DISTRICT AND
PUEBLO COUNTY, COLORADO, RELATING TO THE EVRAZ
URBAN RENEWAL PROJECT AND AUTHORIZING THE
PRESIDENT OF CITY COUNCIL TO EXECUTE SAID
AGREEMENT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Property Tax Increment Revenue Agreement, dated November 12, 2018, between
the City of Pueblo and the Pueblo Urban Renewal Authority and Pueblo School District No. 60
and the Pueblo City County Library District and the Southeastern Colorado Water Conservancy
District and the Lower Arkansas Valley Water Conservancy District and Pueblo County, Colorado
relating to the Evraz Urban Renewal Project, a copy of which is attached hereto, having been
approved as to form by the City Attorney, is hereby approved. The President of City Council is
authorized to execute and deliver said agreement in the name of the City and the Acting City
Clerk is directed to affix the seal of the City thereto and attest same.
SECTION 2.
The officers and staff of the City are authorized and directed to perform any and all acts
consistent with this Ordinance and the attached agreement, which are necessary or appropriate
to implement the transactions described therein.
SECTION 3.
This Ordinance shall become effective immediately upon final passage.
INTRODUCED: October 22, 2018
BY: Ed Brown
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
ACTING CITY CLERK
PASSED AND APPROVED: November 12, 2018