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Home My WebLink About09901ORDINANCE NO. 9901 AN ORDINANCE FORGIVING THE LOANS FROM THE COVID- 19 EMERGENCY PROJECT AND CANCELLING THE CORRESPONDING PROMISSORY NOTES SIGNED BY (1) THE PUEBLO ZOOLOGICAL SOCIETY, INC. D/B/A THE PUEBLO ZOO, A COLORADO NONPROFIT CORPORATION; (2) THE SANGRE DE CRISTO ARTS AND CONFERENCE CENTER, INC., A COLORADO NONPROFIT CORPORATION; (3) THE SOUTHERN COLORADO THEATRE COMPANY, INC. D/B/A THE STEEL CITY THEATRE, A COLORADO NONPROFIT CORPORATION AND (4) THE PUEBLO PERFORMING ARTS GUILD, INC. D/B/A THE PUEBLO ARTS ALLIANCE, A COLORADO NONPROFIT CORPORATION WHEREAS, on April 13, 2020, by Ord. No. 9698, the City Council established the COVID- 19 Emergency Project within the Sales and Use Tax Capital Improvement Project Fund, commonly referred to as the “half-cent sales tax fund;” and WHEREAS, on April 13, 2020, by Resolution No.14394, City Council transferred $5,000,000 from the 1992-2021 Sales and Use Tax Capital Improvement Projects Fund to the COVID-19 Emergency Project; and WHEREAS, the following arts and cultural organizations provide for the general welfare of the City’s residents, enhance the City’s image and attract tourists from throughout state and nation: a. the Pueblo Zoological Society, Inc. d/b/a the Pueblo Zoo, a Colorado nonprofit corporation (“Pueblo Zoo”); b. the Sangre de Cristo Arts and Conference Center, Inc., a Colorado nonprofit corporation (“Arts Center”); c. the Southern Colorado Theatre Company, Inc. d/b/a Steel City Theatre, a Colorado nonprofit corporation (“Steel City Theatre”); and d. the Pueblo Performing Arts Guild, Inc. d/b/a the Pueblo Arts Alliance, a Colorado nonprofit corporation (“Pueblo Arts Alliance”). (collectively, the “Nonprofit Organizations”); and WHEREAS, the Nonprofit Organizations produce an annual economic impact on the City totaling millions of dollars; and WHEREAS, The Nonprofit Organizations applied for loans from the COVID-19 Emergency Project, signed promissory notes and entered into loan agreements as follows: Name of Organization Date of Promissory Note Amount of Promissory Note Pueblo Zoo June 11, 2020 $75,000 Arts Center June 3, 2020 75,000 Steel City Theatre June 29, 2020 25,000 Pueblo Arts Alliance June 11, 2020 10,000 WHEREAS, the COVID-19 pandemic and the State of Colorado’s subsequent public health orders have been catastrophic for the City’s arts and cultural community. Unlike for-profit entities, the Nonprofit Organizations must rely on grants and contributions from their patrons for their income. The potential failure of the at-risk Nonprofit Organizations (and the resulting loss of jobs) would eviscerate the City’s thriving arts and cultural institutions and would cause the City and its residents irreparable harm; and WHEREAS, as a result of the COVID-19 pandemic, on March 13, 2020, the Mayor declared a State of Local Disaster Emergency pursuant to the Colorado Disaster Emergency Act (C.R.S. § 24-33.5-701, et seq.). While COVID-19 vaccinations have begun in the City, the effects of the pandemic persist, especially for the Nonprofit Organizations, nearly a year after the public health crisis began; and WHEREAS, as demonstrated by the attached letters from the Nonprofit Organizations (which are incorporated herein by reference), enforcement of the aforesaid promissory notes would cause substantial financial harm to the Nonprofit Organizations and would threaten their continued operations in the City; and WHEREAS, forgiveness of the aforesaid loans and cancellation of the corresponding promissory notes is for a public purpose and in furtherance of a municipal function and will maintain cultural and economic opportunities justifying the expenditure of public funds. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The foregoing recitals are hereby incorporated into this Ordinance by reference, as if set forth verbatim herein. SECTION 2. The following loans from the COVID-19 Emergency Project shall be and hereby are forgiven and their corresponding promissory notes shall be and hereby are cancelled: Name of Organization Date of Promissory Note Amount of Promissory Note Pueblo Zoo June 11, 2020 $75,000 Arts Center June 3, 2020 75,000 Steel City Theatre June 29, 2020 25,000 Pueblo Arts Alliance June 11, 2020 10,000 SECTION 3. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance to effectuate the policies and procedures described herein. SECTION 4. 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 8, 2021 . Final adoption of Ordinance by City Council on March 22, 2021 . President of City Council Action by the Mayor: ☒ Approved on March 24, 2021 . □ 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 Acting City Clerk City Clerk’s Office Item # R-7 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: March 8, 2021 TO: President Lawrence W. Atencio and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Brenda Armijo, City Clerk FROM: Daniel C. Kogovsek, City Attorney SUBJECT: AN ORDINANCE FORGIVING THE LOANS FROM THE COVID-19 EMERGENCY PROJECT AND CANCELLING THE CORRESPONDING PROMISSORY NOTES SIGNED BY (1) THE PUEBLO ZOOLOGICAL SOCIETY, INC. D/B/A THE PUEBLO ZOO, A COLORADO NONPROFIT CORPORATION; (2) THE SANGRE DE CRISTO ARTS AND CONFERENCE CENTER, INC., A COLORADO NONPROFIT CORPORATION; (3) THE SOUTHERN COLORADO THEATRE COMPANY, INC. D/B/A THE STEEL CITY THEATRE, A COLORADO NONPROFIT CORPORATION AND (4) THE PUEBLO PERFORMING ARTS GUILD, INC. D/B/A THE PUEBLO ARTS ALLIANCE, A COLORADO NONPROFIT CORPORATION SUMMARY: Attached is a proposed Ordinance which forgives the debt and cancels the promissory notes of the following Colorado nonprofit corporations: 1. the Pueblo Zoological Society, Inc. d/b/a the Pueblo Zoo, a Colorado nonprofit corporation (“Pueblo Zoo”); 2. the Sangre de Cristo Arts and Conference Center, Inc., a Colorado nonprofit corporation (“Arts Center”); 3. the Southern Colorado Theatre Company, Inc. d/b/a Steel City Theatre, a Colorado nonprofit corporation (“Steel City Theatre”); and 4. the Pueblo Performing Arts Guild, Inc. d/b/a the Pueblo Arts Alliance, a Colorado nonprofit corporation (“Pueblo Arts Alliance”). (collectively, the “Nonprofit Organizations”). PREVIOUS COUNCIL ACTION: On April 13, 2020, by Ord. No. 9698, the City Council established the COVID-19 Emergency Project within the Sales and Use Tax Capital Improvement Project Fund, commonly referred to as the “half-cent sales tax fund.” On April 13, 2020, by Resolution No.14394, City Council transferred $5,000,000 from the 1992- 2021 Sales and Use Tax Capital Improvement Projects Fund to the COVID-19 Emergency Project. BACKGROUND: The Nonprofit Organizations applied for loans from the COVID-19 Emergency Project, signed promissory notes and entered into loan agreements as follows: Name of Organization Date of Promissory Note Amount of Promissory Note Pueblo Zoo June 11, 2020 $75,000 Arts Center June 3, 2020 75,000 Steel City Theatre June 29, 2020 25,000 Pueblo Arts Alliance June 11, 2020 10,000 The COVID-19 pandemic and the State of Colorado’s subsequent public health orders have been catastrophic for the City’s arts and cultural community. Unlike for-profit entities, the Nonprofit Organizations must rely on grants and contributions from their patrons for their income. The potential failure of the at-risk Nonprofit Organizations (and the resulting loss of jobs) would eviscerate the City’s thriving arts and cultural institutions and would cause the City and its residents irreparable harm. As a result of the COVID-19 pandemic, on March 13, 2020, the Mayor declared a State of Local Disaster Emergency pursuant to the Colorado Disaster Emergency Act (C.R.S. § 24-33.5-701, et seq.). While COVID-19 vaccinations have begun in the City, the effects of the pandemic persist, especially for the Nonprofit Organizations, nearly a year after the public health crisis began. FINANCIAL IMPLICATIONS: The COVID-19 Emergency Project would suffer a loss of $185,000, but half-cent sales tax fund currently contains sufficient unobligated monies to absorb this loss. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: City Council has the option of not cancelling the loans to the Nonprofit Organizations. RECOMMENDATION: The Mayor supports the adoption of the proposed Ordinance. Attachments: Proposed Ordinance.