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HomeMy WebLinkAbout14521RESOLUTION NO. 14521 A RESOLUTION TO ENTER INTO A LETTER OF INTENT AND NEGOTIATE WITH THE HOUSING TRUST GROUP, LLC, A FLORIDA LIMITED LIABILITY COMPANY, FOR THE PURPOSE OF DEVELOPING AN OPTION AGREEMENT FOR THE SALE AND REDEVELOPMENT OF THE POPE BLOCK BUILDING FOR MIXED-USE, AFFORDABLE HOUSING DEVELOPMENT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The Housing Trust Group, LLC submitted a Letter of Intent to purchase the Pope Block Building located at 317 N. Main Street, Pueblo, Colorado, containing Parcel No: 536126001, 536126011, 536126016. The Housing Trust Group wishes to develop a mixed-use property containing affordable housing and seeks to negotiate a mutually acceptable agreement for an option to purchase the property from the City of Pueblo. The Letter of Intent for the mixed-use, affordable housing project, a copy of which is attached hereto and incorporated herein, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The request to enter negotiations with the Housing Trust Group, LLC for the purpose of developing an Option Agreement for the sale of the Pope Block Building and listed parcels is hereby accepted and approved. SECTION 3. The Mayor is hereby authorized to execute the Letter of Intent in the name and on behalf of the City of Pueblo, where the Mayor may execute the Letter of Intent by electronic signature and such electronic signature shall be attributable to the Mayor and the City of Pueblo. SECTION 4. The officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and the attached Letter of Intent to effectuate the transactions described therein. SECTION 5. This Resolution shall become effective immediately upon passage and approval. INTRODUCED December 14, 2020 BY: Ed Brown MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk’s Office Item # M-5 Background Paper for Proposed RESOLUTION COUNCIL MEETING DATE: December 14, 2020 TO: President Dennis E. Flores and Members of City Council CC: Nicholas A. Gradisar, Mayor VIA: Brenda Armijo, City Clerk FROM: Bryan Gallagher, Director, Housing and Citizen Services SUBJECT: A RESOLUTION TO ENTER INTO A LETTER OF INTENT AND NEGOTIATE WITH THE HOUSING TRUST GROUP, LLC, A FLORIDA LIMITED LIABILITY COMPANY, FOR THE PURPOSE OF DEVELOPING AN OPTION AGREEMENT FOR THE SALE AND REDEVELOPMENT OF THE POPE BLOCK BUILDING FOR MIXED-USE, AFFORDABLE HOUSING DEVELOPMENT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: This Resolution authorizes the City of Pueblo to enter into a Letter of Intent and negotiate with the Housing Trust Group, working towards the development of an Option Agreement for the sale of the Pope Block Building, and authorizing the Mayor to execute same. This will restrict the sale of the property to the Housing Trust Group while negotiations are ongoing and will provide the developer with more time to seek outside funding, including Low Income Housing Tax Credits or other State and Federal incentive type financing. PREVIOUS COUNCIL ACTION: The City Council has not taken previous action on this matter. BACKGROUND: The Housing Trust Group has submitted a Letter of Intent (“LOI”) to purchase the Pope Block Building located at 317 N. Main Street, Pueblo, Colorado to include Parcel No. 536126001, 536126011, and 536126016. The LOI was submitted with the intent to develop a mix-used building to include approximately forty (40) affordable housing units on the upper floors. FINANCIAL IMPLICATIONS: Should the developer acquire the necessary financing to effectuate the project, the City could benefit financially by receipt of the negotiated sale price along with sales/use tax collected from the construction of the project. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: The City could elect not to enter negotiations and keep the property in its inventory. RECOMMENDATION: Approval of the Resolution. ATTACHMENTS: Attachment 1: Letter of Intent from the Housing Trust Group, LLC