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Home My WebLink About09607 ORDINANCE NO. 9607 AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AMENDMENT NO. 2 TO THE ANNEXATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND CF&I STEEL, L.P., A DELAWARE LIMITED PARTNERSHIP BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City and CF&I Steel, L.P., a Delaware limited partnership (the “Company”) entered into an Annexation Agreement dated November 12, 2018. The City Council finds and determines that good cause exists for the extension of the “off ramp” date for the Company. The Amendment No. 2 to Annexation Agreement (the “Amendment”) dated November 25, 2019, 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 Mayor is authorized to execute and deliver said Amendment in the name of the City and the 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 the intent of this Ordinance and the attached Amendment No. 2 to Annexation Agreement which are necessary or desirable to implement the transactions described therein. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on November 11, 2019 . Final adoption of Ordinance by City Council on November 25, 2019 . President of City Council Action by the Mayor: ☒ Approved on November 27, 2019 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: ☐ Council did not act to override the Mayor's veto. ☐ Ordinance re-adopted on a vote of , on ☐ Council action on __________________failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk’s Office Item # R-13 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: November 11, 2019 TO: President Dennis E. Flores and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO SIGN AN AMENDMENT NO. 2 TO THE ANNEXATION AGREEMENT BETWEEN THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION AND CF&I STEEL, L.P., A DELAWARE LIMITED PARTNERSHIP SUMMARY: Attached is an Ordinance approving and authorizing the Mayor to sign an Amendment No. 2 to the annexation agreement with CF&I Steel, L.P., as Delaware limited partnership (the “Company”). This amendment extends the Company’s “off ramp” date from December 1, 2019 until April 1, 2020. PREVIOUS COUNCIL ACTION: The Company and City entered into an Annexation Agreement dated November 12, 2018. On September 23, 2019, the Annexation Agreement was amended to replace the original Exhibit A with a substitute Exhibit A which contained an amended and enlarged legal description of the property to be annexed. BACKGROUND: The basic engineering for the construction of a new rail mill is proceeding as planned. However, the Company has experienced some delays which are affecting the overall project timeline. Therefore, Company is requesting an extension of the “off ramp” deadline from December 1, 2019 until April 1, 2020. FINANCIAL IMPLICATIONS: There will be no financial impact on the City if City Council approves the extension requested by the Company. No City funds will be transferred to the Company before the expiration of the Company’s “off ramp” deadline. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If this Ordinance is not approved, the Company will have the option of withdrawing from the new steel mill project. RECOMMENDATION: The Pueblo Economic Development Corporation recommends approval of this Ordinance. Attachments: Proposed Ordinance and proposed Amendment to Annexation Agreement Amendment No. 2 to Annexation Agreement This Amendment No. 2 to Annexation Agreement ("Amendment") is entered into this 25th day of November, 2019 by and between the City of Pueblo, a Colorado municipal corporation (the "City") and CF&I Steel, L.P., a Delaware limited partnership (the "Petitioner"). The Petitioner and the City are referred to collectively in this Amendment as the "Parties" and individually, without differentiation, each as a "Party". Recitals WHEREAS, the Parties entered into an Annexation Agreement dated November 12, 2018 (the "Agreement"); and WHEREAS, the purpose of this Amendment is to extend the Petitioner's "off ramp" date specified in the Agreement from December 1, 2019 until April 1, 2020. Agreement In consideration of the mutual covenants, agreements and promises in this Amendment and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as set forth in this Amendment: 1. Section XV (2) of the Agreement is hereby amended and restated as follows: (2) The Parties agree that on or before April 1, 2020, Petitioner, at its sole option, may terminate this Annexation Agreement and the City and Petitioner shall thereafter be released and discharged from all obligations hereunder. 2. Except as modified by this Amendment, the provisions of the Agreement shall remain unchanged and in full force and effect and fully binding on the Parties, their successors and assigns and the Agreement and this Amendment shall be construed together as a single integrated document. IN WITNESS WHEREOF, this Amendment is executed by the Parties hereto in their respective names as of the date first above written. CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION 44°.1":°' ATTEST: . r...00. A° By: Nicholas A. Gradisar, ayor °°��_°° tuna& 7 Brenda Armijo, City` Jerk CF&I STEEL, L.P. A DELAWARE L ITED PARTNERSHIP By: 4 c:L2/ (Signatur: (Print Name) Skip Herald (Print Title) Member General Partner STATE OF Illinois ) ) ss. COUNTY OF Cook ) The foregoing instrument was acknowledged before me this 21st day of August , 2019 by Skip Herald , as Member General Partner of CF&I Steel, a Delaware limited partnership. Witness my hand and official seal. My commission expires: June 12,2023 [ SEAL ] � ,� Notary Public ANiTA L JAGUDEN SPENCER OMciat Seel Notary Public- State of Illinois My Commission Expires.fun 12, 2023