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