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Home My WebLink About14498 RESOLUTION NO. 14498 A RESOLUTION ACCEPTING THE ASSIGNMENT OF A CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) FROM PUEBLO COUNTY, COLORADO, A POLITICAL SUBDIVISION OF THE STATE OF COLORADO, TO ITSELF AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, CONCERNING THE REAL PROPERTY AND IMPROVEMENTS LOCATED AT 201 W. TH 8 ST., PUEBLO, COLORADO AND AUTHORIZING THE MAYOR TO EXECUTE AN ACCEPTANCE OF SAID ASSIGNMENT WHEREAS, on October 20, 2020 Pueblo County, acting by and through its Board of County Commissioners (“County Board”) accepted an assignment of a Contract to Buy and Sell Real Estate, (“Contract”), concerning the real property and improvements located th at 201 W. 8 St., Pueblo, Colorado (“Property”); and WHEREAS, Pueblo County desires to obtain the Property in conjunction with the City of Pueblo for future use by both entities as a center for a variety of governmental services; and WHEREAS, on October 22, 2020 the County Board approved the assignment of the Contract to the County and the City. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Assignment of the Contract to Buy and Sell Real Estate (Commercial) from Pueblo County to itself and the City of Pueblo is hereby is hereby accepted and approved. SECTION 2. The Acceptance of Assignment dated October 26, 2020 between the City of Pueblo, a Colorado Municipal Corporation and Pueblo County, a copy of which is attached hereto (”Acceptance”) having been approved as to form by the City Attorney, is hereby approved. The Mayor is authorized to execute and deliver the Acceptance in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The officers and staff of the City are authorized and directed to perform all acts consistent with this Resolution to implement the policies and procedures described herein. SECTION 4. This Resolution shall become effective upon passage and approval. INTRODUCED October 26, 2020 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk’s Office Item # Q-2 Background Paper for Proposed Resolution COUNCIL MEETING DATE: October 26, 2020 TO: Council 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: A RESOLUTION ACCEPTING THE ASSIGNMENT OF A CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) FROM PUEBLO COUNTY, COLORADO, A POLITICAL SUBDIVISION OF THE STATE OF COLORADO, TO ITSELF AND THE CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, CONCERNING THE REAL PROPERTY AND TH IMPROVEMENTS LOCATED AT 201 W. 8 ST., PUEBLO, COLORADO AND AUTHORIZING THE MAYOR TO EXECUTE AN ACCEPTANCE OF SAID ASSIGNMENT SUMMARY: Attached is a Resolution accepting and approving the Assignment of a Contract to Buy and Sell Real Estate (Commercial) from Pueblo County to itself and the City of Pueblo concerning the real th property and improvements located at 201 W. 8 Street in downtown Pueblo. The Resolution also authorizes the Mayor to sign an Acceptance of Assignment document evidencing the City’s acceptance of the assignment. PREVIOUS COUNCIL ACTION: Not applicable to this Resolution. BACKGROUND: On October 20, 2020 Pueblo County, acting by and through its Board of County Commissioners (“County Board”) accepted an assignment of a Contract to Buy and Sell Real Estate, (“Contract”), th concerning the real property and improvements located at 201 W. 8 St., Pueblo, Colorado (“Property”). Pueblo County desires to obtain the Property in conjunction with the City of Pueblo for future use by both entities as a center for a variety of governmental services. On October 22, 2020 the County Board approved the assignment of the Contract to the County and the City. The building located on the Property contains approximately 117,000 square feet. Joint purchase of the Property would allow certain City offices to relocate. Co-location of some City and County offices could be very beneficial local businesses and residents transacting business with the City and County. DUE DILIGENCE AND THE “OFF RAMP” Approval of the attached Resolution does not obligate the City or County to purchase the Property. Instead, approval of this Resolution will initiate a 45-day due diligence investigation to determine the legal, financial and logistical implications of the purchase. With the exception of Wells Fargo Bank, which has a long-term lease of the first floor of the building, neither the City nor the County want to become landlords collecting rent from third-party tenants. With the exception of the first floor, the purchase will not go forward unless the City and County can occupy nearly all of the space in the building. The Contract to Buy and Sell Real Estate (Commercial) which is being assigned contains an “off ramp” clause which allows the County or City to cancel the purchase agreement if the City or County decide the purchase is not financially or logistically feasible. Until the date of Closing, “if, for any reason, Buyer determines in Buyer’s sole and absolute discretion that the property is not in a suitable condition or is not economically, or otherwise, feasible for Buyer’s purpose, Buyer may terminate this Contract . . . and shall be entitled to a full refund of the Earnest Money.” FINANCIAL IMPLICATIONS: The purchase price for the Property is $5.5 million. Pueblo County has paid a refundable Earnest Money deposit of $50,000. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If City Council does not approve this Resolution, the City will be precluded from conducting a due diligence investigation regarding the purchase of the Property for future City use. RECOMMENDATION: The Mayor recommends approval of this Resolution Attachments: Proposed Resolution; proposed Acceptance of Assignment ASSIGNMENT OF CONTRACT TO BUY AND SELL REAL ESTATE (COMMERCIAL) For and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned, Garrison Ortiz, in his capacity as Chair of the Pueblo County Board of County Commissioners, ("Assignor"), of 215 W. 10th St., Pueblo, CO 81003 hereby assigns and transfers all of its right, title, interest, duties and obligations in, to, and under that certain Contract to Buy and Sell Real Estate (Commercial) ("Contract") dated October 16, 2020 by and between Assignor as Buyer and Alexander Grayling, LTD. as Seller to Pueblo County, Colorado, a body corporate and a political subdivision of the State of Colorado, and the City of Pueblo, a Colorado municipal corporation and a home-rule municipality, (collectively "Assignee"), its successors and assigns, forever, subject to all of the terms, conditions, and stipulations set forth in the Contract. A true and accurate copy of the fully executed Contract and the Assignment and Acceptance of Assignment from the original Buyer to the County of Pueblo is attached hereto and incorporated herein by this reference as though fully set forth, labeled Exhibit A. Assignor represents to Assignee that the attached Exhibit A is the complete agreement for the sale and purchase of the real property and improvements identified therein and that the Agreement authorizes this assignment by Assignor. This Assignment is conditioned, and shall be fully effective, upon the execution by the Assignee of the Acceptance of Assignment set forth below. Assignor's signature hereon shall also constitute an acceptance of the assignment by Pueblo County. ASSIGNOR: //,O Garrison Ortiz, Chair Date Pueblo County Board of County Commissioners COUNTY OF PUEBLO ) )ss. STATE OF COLORADO ) Subscribed, sworn to and acknowledged before me by Garrison Ortiz in'his capacity as Chair of the Board of County Commissioners of Pueblo, Colorado this .2°,. day of•Gteteber, 2020. pi 0 At Witness my hand and official seal. My commission expires: d a— ROCHELLE CRU Notary Public Notary Public StatlD#20064001321 Notary M CommissionEx•ires01-11-202 ACCEPTANCE OF ASSIGNMENT City of Pueblo, Colorado ("Assignee") acting by and through its undersigned Mayor, Nicholas A. Gradisar, of 1 City Hall PI., 2nd floor, Pueblo, CO 81003 hereby accepts the foregoing Assignment of Contract to Buy and Sell Real Estate (Commercial) upon the terms set forth and, further, agrees to assume and be bound by all of the obligations of Buyer under the Contract and all provisions of the Contract and ratifies and confirms the Contract as if an original party to the same. ASSIGNEE: -24 06 Nicholas A. Cr disar, Mayor Date City of Pueblo, Colorado COUNTY OF PUEBLO ) )ss. STATE OF COLORADO ) Subscribed, sworn to and acknowledged before me by Nicholas A. Gradisar in his capacity as Mayor of the City of Pueblo this 30 day of October, 2020. Witness my hand and official seal. My commission expires: sa)a 31„)t 194t 11 da- tin/b Notary Public BELINDA KIMBALL NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20094005563 MY COMMISSION EXPIRES FEBRUARY 23,2021