HomeMy WebLinkAbout09692 ORDINANCE NO. 9692
AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR
TO SIGN AN AMENDMENT NO. 3 TO AN 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. 3 to the Annexation Agreement (the “Amendment No. 3”) dated March 23, 2020, 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 No. 3 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. 3 to the 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 March 9, 2020 .
Final adoption of Ordinance by City Council on March 23, 2020 .
President of City Council
Action by the Mayor:
☒ Approved on March 25, 2020 .
☐ 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-8
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: March 9, 2020
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. 3 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. 3 to
the annexation agreement with CF&I Steel, L.P., a Delaware limited partnership (the “Company”).
This amendment extends the Company’s “off ramp” date from April 1, 2020 until July 1, 2020.
PREVIOUS COUNCIL ACTION:
The Company and City entered into an Annexation Agreement dated November 12, 2018. See
Ordinance No. 9362 and 9363. 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. See Ordinance No. 9554, 9555 and
9556. On November 25, 2019, by Ordinance No. 9607, City Council approved an extension of the
Company’s “off ramp” deadline from December 1, 2019 until April 1, 2020.
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 April 1, 2020 until
July 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. 3 to Annexation Agreement
This Amendment No. 3 to Annexation Agreement ("Amendment No. 3") is entered
into this 23rd day of March, 2020 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 No. 3 is to extend the Petitioner's "off
ramp" date specified in the Agreement from April 1, 2020 until July 1, 2020.
Agreement
In consideration of the mutual covenants, agreements and promises in this
Amendment No. 3 and other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, the Parties agree as set forth in this Amendment No.
3:
1. Section XV (2) of the Agreement is hereby amended and restated as
follows:
(2) The Parties agree that on or before July 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 No. 3, 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 No. 3 shall
be construed together as a single integrated document.
IN WITNESS WHEREOF, this Amendment No. 3 is executed by the Parties hereto
in their respective names as of the date first above written.
CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATIONON,
°S •
36/41/.
l ATTEST: • Iforre
By: Nicholas A. Gradisar, ayor
ttinctzt
Brenda Armijo, lerk
City'
1
CF&I STEEL, L.P.
A DELAWAR ITED PARTNERSHIP
By:
(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 , 2020 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 ] _ . . .ir. �•._�>_� 01..
Notary Public
ANITA L JAGUDES SPENCER `
coal Si.! r
Notary Public- State of Ong*My Commission Expires Jun 12, 2123
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