HomeMy WebLinkAbout09781ORDINANCE NO. 9781
AN EMERGENCY ORDINANCE APPROVING THE PURCHASE
OF 350 KEELER PARKWAY, PUEBLO, CO 81001 FROM THAR
PROCESS, INC., A PENNSYLVANIA CORPORATION, FOR FIVE
MILLION THREE HUNDRED FORTY-ONE THOUSAND FIVE
HUNDRED EIGHT DOLLARS AND THIRTY-EIGHT CENTS
($5,341,508.38) PLUS THE COSTS OF TITLE INSURANCE AND
CLOSING COSTS AND AUTHORIZING THE MAYOR TO TAKE
SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AT
CLOSING AS NECESSARY TO COMPLETE SAID PURCHASE
AND TRANSFERRING FIVE MILLION THREE HUNDRED
FORTY-ONE THOUSAND FIVE HUNDRED EIGHT DOLLARS
AND THIRTY-EIGHT CENTS ($5,341,508.38) PLUS THE COSTS
OF TITLE INSURANCE AND CLOSING COSTS FROM THE 1992-
2021 SALES AND USE TAX CAPITAL IMPROVEMENT
PROJECTS FUND FOR SAID PURCHASE
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council finds and determines that the expenditure of $5,341,508.38 plus the
costs of title insurance and closing costs for the purchase of 350 Keeler Parkway, Pueblo, CO
81001, located in the Memorial Airport Industrial Park, will result in future job creating capital
improvement projects, is for a public purpose and in furtherance of a municipal function and will
create employment opportunities justifying the expenditure of public funds.
SECTION 2.
The Mayor is authorized to take such future actions and execute and deliver such
documents at closing, in the name of the City, as required to complete the purchase of 350 Keeler
Parkway, Pueblo, CO 81001.
SECTION 3.
Funds in the aggregate amount of $5,341,508.38 plus the costs of title insurance and
closing costs are hereby authorized to be transferred, expended and made available out of the
1992-2021 Sales and Use Tax Capital Improvement Projects Fund for the sole purpose of the
purchase of 350 Keeler Parkway, Pueblo, CO 81001.
SECTION 4.
Savings Clause: The immediate enactment of this Ordinance is necessary in order to
preserve and protect the health, safety and welfare of the residents of the City. A Case
Management Conference in Vision Air, HVAC, Inc., et al., v. Thar Process, Inc., Pueblo County
District Court, Case No. 2020CV30159, Div. 405, is currently scheduled for September 23, 2020.
Approval of this Ordinance will enable the City and the parties in the mechanics lien foreclosure
action to settle the litigation.
SECTION 5.
The officers and staff of the City are authorized and directed to perform any and all acts
consistent with this Ordinance which are necessary or appropriate to implement the transactions
described therein.
SECTION 6.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
REST OF THIS PAGE LEFT INTENTIONALLY BLANK
SIGNATURE PAGE TO FOLLOW
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on September 14, 2020.
Final adoption of Ordinance by City Council on September 14, 2020.
President of City Council
Action by the Mayor:
☒ Approved on September 17, 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 # S-2
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: September 14, 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 EMERGENCY ORDINANCE APPROVING THE PURCHASE OF 350
KEELER PARKWAY, PUEBLO, CO 81001 FROM THAR PROCESS, INC., A
PENNSYLVANIA CORPORATION, FOR FIVE MILLION THREE HUNDRED
FORTY-ONE THOUSAND FIVE HUNDRED EIGHT DOLLARS AND THIRTY-
EIGHT CENTS ($5,341,508.38) PLUS THE COSTS OF TITLE INSURANCE AND
CLOSING COSTS AND AUTHORIZING THE MAYOR TO TAKE SUCH ACTIONS
AND EXECUTE SUCH DOCUMENTS AT CLOSING AS NECESSARY TO
COMPLETE SAID PURCHASE AND TRANSFERRING FIVE MILLION THREE
HUNDRED FORTY-ONE THOUSAND FIVE HUNDRED EIGHT DOLLARS AND
THIRTY-EIGHT CENTS ($5,341,508.38) PLUS THE COSTS OF TITLE
INSURANCE AND CLOSING COSTS FROM THE 1992-2021 SALES AND USE
TAX CAPITAL IMPROVEMENT PROJECTS FUND FOR SAID PURCHASE
SUMMARY:
Attached is an Ordinance approving the purchase of 350 Keeler Parkway, Pueblo, CO 81001,
located in the Memorial Airport Industrial Park, from Thar Process for $5,341,508.38 and
authorizing the Mayor to take actions and execute such documents at closing as necessary to
complete the purchase.
PREVIOUS COUNCIL ACTION:
On August 26, 2019, by Ordinance No. 9511, City Council approved an Employment Agreement
with Thar Extracts, LLC and agreed to sell 350 Keeler Parkway to Thar Process for $4,120,000.
The City recorded a Second Deed of Trust for $405,000 on the subject property to secure the
performance of Thar Extracts under the employment agreement
BACKGROUND:
Thar Process made significant improvements to the subject property but did not complete the
remodeling. As a result, the local general contractor and many local subcontractors were not paid
in full for their labor and materials. Vision Air HVAC, Inc. and Pueblo Electrics, Inc., two local
contractors, filed a mechanics lien foreclosure action in Vision Air, HVAC, Inc., et al., v. Thar
Process, Inc., Pueblo County District Court, Case No. 2020CV30159, Div. 405. The purchase
price proceeds will be used to pay all lienholders as follows to settle the mechanics lien lawsuit:
Claimant Principal
Legacy Bank 2,927,986.81
City of Pueblo 405,000.00
Vision Air 751,078.07
Pueblo Electrics 373.725.82
HGF Architects 118,512.50
Whitlock 322,861.14
Mansfield 74,825.50
Montano Concrete 49,772.50
M&M Fire 22,654.93
KR Painting 9,228.00
Aspen Steel 8,264.00
Keys Complete 236,289.00
True Grit 41,310.11
Total 5,341,508.38
Thar Process, Inc. and its affiliated company, Thar Extracts, LLC will not receice any
compensation for the sale. Mechanics lien claimants are entitled to receive interest on
unpaid invoices at 12% percent per year. The aforesaid claimants have agreed to accept
the principal amount of their claims only and to waive interest owed to them. All parties to
the litigation have agreed to pay their own costs and attorney fees.
FINANCIAL IMPLICATIONS:
In July, 2020, the subject property was appraised by John M. Andersen, Certified General
Appraiser as having an “as is” value of $5,500,000. Thus, the City paying $158,491.62 less than
appraised value.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
If this Ordinance is not approved, the mechanics lien foreclosure action will not be dismissed, the
City’s Second Deed of Trust and the local contractors will remain unpaid and the City will not
acquire 350 Keeler Parkway for future economic development.
RECOMMENDATION:
The Pueblo Economic Development Corporation recommends approval of this Ordinance.
Attachments:
Proposed Ordinance
Reception 2194937
10/01/2020 08:37:40 AM Page 1 of 1
QUITCLAIM DEED
THIS QUITCLAIM DEED, made this 25th day of September, 2020 between the Thar
Process, Inc., a Pennsylvania corporation, (hereinafter referred to as "Grantor"), and the City of
Pueblo, a Colorado municipal corporation, whose legal address is 1 City Hall Place, Pueblo, CO
81003 (hereinafter referred to as"Grantee"):
WITNESSESTH,that the Grantor,for and in consideration of the sum of TEN DOLLARS
($10.00), and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, has QUITCLAIMED, and by these presents does QUITCLAIM, unto the
Grantee, its heirs, successors and assigns, all right, title and interest that the Grantor has in the
real property, together with improvements, if any, situate, lying and being in Pueblo County, State
of Colorado, described as follows:
Lot 33, Pueblo Memorial Airport Industrial Park Subdivision, Pueblo County, State of Colorado,
according to the recorded plat thereof filed in the records of the Pueblo County Clerk and
Recorder, also known by street and number as 350 Keeler Parkway, Pueblo, CO 81001.
IN WITNESS WHEREOF, this Quitclaim Deed is executed by Grantor to be effective the
day and year first above written.
GRANTOR:
Thar Process, Inc.
A Pennsylvani- Corporation
By: I ,l
Oft
l
1 10 ' 3 sag aa.?
(Print Name)
' 5( cL.e./
(Print Title)
COMMONWEALTH OF PENNSYLVANIA )
COUNTY OF ALLEGHENY ) ss.
The foregoing instrument was acknowledged before me this a32 dayof
SEP TE •BE'2 , 2020 by Tl
odd 04:7 cc 1c
Process, Inc., a Pennsylvania corporation.. as 2 s / „'t of Thar
Witness my hand and official seal.
My commission expires: q'g"12/
[SEAL] . --e / G •aCi.L
COMMONWEALTH OF PENNSYLVANIA
NOTARIAL SEAL Notary Public
DianeJ.Parks,Notary Public
Pine Twp.,Allegheny County
My Commission Expires Sept.9,2021
MEMBER.PENNSYLVANIAASSOCIATION OF NOTARIES